KPI vs. Points: What’s the Right Mix for You?

Aug 7, 2025

A Practical Guide for SME Founders and HR Leaders Balancing Measurement and Motivation

“Should we keep using KPIs or shift fully to points-based behavior tracking?”

This is one of the most common questions we hear from SME leaders implementing POISUM.

The good news is — you don’t have to choose one or the other.
The key is to understand what each system tracks, and how they work better together when used intentionally.

Let’s Define the Tools: KPI vs. Points

System	What It Tracks	Used For
KPI (Key Performance Indicator)	Outcomes	Strategic targets, performance evaluation
Points (POISUM)	Behaviors	Daily habits, cultural reinforcement, engagement

Think of KPIs as what you want to achieve, and Points as how your people get there.

Where KPIs Fall Short Alone

While KPIs are critical for setting direction, they come with challenges in SME environments:

Weakness	Impact
Lagging	Results show up only after the quarter/year
Detached	Teams don’t always know what to do to hit them
Stress-inducing	Pressure without visibility = burnout
Limited coverage	Often focuses only on sales/output roles

That’s where Points come in to bridge the gap.

What Points Add to the System

POISUM’s non-redeemable, value-tagged Points system brings in:

Strength	Benefit
Real-time feedback	Reinforces behavior immediately
Visibility of effort	Shows who’s contributing, not just performing
Cultural alignment	Tracks how values are being lived daily
Team-wide inclusion	Works across all departments — not just sales

It turns “soft” culture into trackable data.

Finding the Right Mix: A 3-Part Model

1. Use KPIs to Set Direction

Set 3–5 clear, measurable KPIs at the company or departmental level.

Examples:
• Sales growth
• Customer satisfaction score
• Delivery accuracy
• Cost reduction

These are your “destination markers.”

2. Use Points to Drive Daily Motion

Design daily or weekly Missions tied to your strategy and tagged with values.

Examples:
• “Follow up with 3 clients” → Customer Focus
• “Propose cost-saving idea” → Innovation
• “Submit error-free report on time” → Discipline

These are your “driving behaviors.”

3. Link Points to KPI Impact (Not Rewards)

Track which value behaviors correlate with strong KPI progress.

KPI	Supporting Value Behaviors
Faster fulfillment	Discipline, Ownership
Higher client retention	Teamwork, Customer Focus
Lower costs	Innovation, Discipline

This creates a behavior–result feedback loop.

Mix & Match Framework (Based on Business Maturity)

Stage	Recommended Mix	Why
Early Stage SME	30% KPI / 70% Points	Focus on culture building and ownership first
Growing Teams	50% KPI / 50% Points	Align structure with scaling behaviors
Performance-Mature Org	70% KPI / 30% Points	Use points to sustain motivation and morale