KPI Theatre: When Marketing Metrics Steal the Spotlight but Miss the Plot
Act I: The Curtain Rises on KPI Theatre
Picture this: a velvet-curtained stage, a spotlight, and a cast of characters (CAC, ROAS, CTR, and ROI) dressed in Shakespearean garb, hamming it up for the audience. They recite lines, strike dramatic poses, and bask in applause. But behind the scenes, the business is losing money.
Welcome to KPI Theatre, where metrics perform for internal validation instead of driving external growth.
Act II: The Principal-Agent Problem in Marketing
In classic economics, the principal-agent problem describes a misalignment: when someone hired to act on behalf of another begins optimizing for their own success instead. In marketing, this shows up when:
ROAS is gamed to hit bonus thresholds
CAC targets are set by budget, not market reality
Attribution models reward activity, not contribution
Agents (marketers, vendors, analysts) become performers, not partners. They protect their lanes, polish their dashboards, and resist bold plays that could benefit the principal.
Act III: KPI Theatre by Quadrant
Let’s break it down using Growth Spectrum’s quadrant lens:
KPI Theatre by Idea, Process, People, and Action quadrants across behaviors and strategic reframing goals.
Act IV: Real-World Examples of KPI Theatre
From our recent blog on income-driven strategy, we saw:
A CMO rejecting free ad dollars because it would “distort ROAS” and disqualify him from a bonus
A startup setting CAC targets based on affordability, not feasibility
A brand ignoring its most profitable use case because it didn’t fit the original marketing narrative
These are not failures of data; they’re failures of alignment.
Act V: Rewriting the Script
To escape KPI Theatre, principals must:
Align metrics with business outcomes, not internal optics
Reward contribution, not compliance
Build quadrant-aligned scorecards that reflect strategic clarity, process integrity, emotional honesty, and execution rigor
Coach marketers to think like owners, not performers
Final Scene: From Theatre to Transformation
KPI Theatre is seductive. It’s clean, quantifiable, and easy to present. But it’s also a trap. Real growth comes from messy experimentation, uncomfortable truths, and metrics that reflect reality (not vanity.)
At Growth Spectrum, we help organizations rewrite the script. Whether through executive coaching, marketing strategy, or diagnostic frameworks, we activate agents toward true growth.
Ready to exit KPI Theatre and enter the growth arena?
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