The execution of a strategy hinges upon proper performance evaluation. Predicting future internal and external conditions, tracking performance compared to goals, and making wise decisions all depend on an understanding of and identification with management strategy.Thus, companies that employ strategic decision-making have to review and improve their performance measurement practices to guarantee the effectiveness of their policies.
In the Middle East and North Africa (MENA) region—an area defined by diverse landscapes, cultures, and economies—performance measurement practices have evolved considerably. The region has undergone significant transformations in recent years, driven by economic diversification, geopolitical developments, and rapid technological advancements. These dynamics have aggravated the need for effective strategic performance measurements that are both adaptable and able to produce quantifiable results in fast-changing surroundings.
According to theState of Strategy Management Practice Report2024 published by the KPI Institute (TKI), insights from over 90 organizations across MENA reveal trends and strategies for building smarter performance measurement systems. This annual report includes data, expert insights, and advice from leaders in top organizations, offering a comprehensive overview of current best practices in the region.
Companies in the MENA region have adopted more flexible methodologies like OKRs alongside tried-and-tested frameworks like the balanced scorecard (BSC). The BSC is still rather popular, but the adoption of OKRs jumped to 34% in 2024 from 20% in 2023. This change represents an increasing demand for adaptability and short-term goal-setting, which helps businesses solve current problems while maintaining alignment with long-term objectives. Hybrid systems were developed by about26% of firms in 2024, indicating a trend toward more flexible performance evaluation practices.
The fact that 57% of companies were already using key performance indicators (KPIs) in 2024 to evaluate staff performance shows a trend toward metrics that focus on the workers. A balanced emphasis on operational efficiency and strategic results is shown by how companies in the MENA region follow practices such as operational and process monitoring (51%), followed closely by corporate performance evaluation (48%).
However, it is also worth noting that the report found that the capability to select relevant KPIs has dropped from 3.4 in 2023 to 3.2 in 2024 (on a scale of 1 to 5), showing a declining ability to find metrics that are linked with strategic objectives. Furthermore, a 5% reduction in KPI relevance to a modest level of 3.1 indicates a widening gap between KPIs and actual organizational performance.
Challenges and Recommendations in Performance Measurement
The report highlights that selecting and aligning KPIs remains the top challenge for organizations. The process is further complicated by the fact that only 28% of organizations in the MENA region utilize dedicated KPI management tools, resulting in inconsistent data collection and sluggish decision-making.
If MENA businesses are to rise above these challenges, TKI recommends using business transformation KPIs to allow companies to enhance performance evaluation considerably. These KPIs track more general organizational changes, including behavioral changes, return on investment (ROI), and staff acceptance rates, rather than conventional measurements, providing a better view of the course of transformation projects. Tracking the percentage of employees actively involved in scheduled adjustments, for instance, helps one understand the workforce’s commitment to the strategic goal.
Another important transformation KPI is performance management maturity. By assessing how well the organization alters its performance management systems over time, this metric provides a baseline for ongoing improvement and illustrates a holistic picture of the business’s transformation route. Such a KPI can be generated as an index through a comprehensive performance audit.
Many companies realize that performance evaluation mostly depends on identifying one statistic to guide decisions. True success in measurement, however, depends onstructure and clarity, which are needed to support decisions that reflect the company’s strategic goals at all levels.
Recognizing the unique challenges in the MENA region, the GPA Unit—a division of TKI that specializes in strategy and performance audits—has developed a comprehensive toolkit dubbed Performance Measurement Maturity Model Framework V1.0, which is designed to address essential areas of performance measurement. This framework empowers organizations to tackle common KPI challenges, providing a structured pathway toward maturity in KPI management. By focusing on core areas—KPI selection, documentation, target setting, data gathering and visualization, and robust governance—this framework guides organizations from basic practices to a mature, data-driven approach.
Putting up a business in the Middle East and North Africa (MENA) region is a journey of navigating unique opportunities and challenges. The MENA region presents a dynamic environment for entrepreneurs and established corporations due to its diverse markets, rich cultural heritage, and fast-growing economies. However, thriving in this region requires more than looking outward. It starts with internal clarity—a well-crafted strategy that seamlessly integrates planning, measurement, and execution.
Strategy Planning
According to the State of Strategy Management Practice – 2024 MENA Region Report, 76% of organizations in the region utilize a formal approach to strategic planning and 56% of respondents review strategy annually or every three years. However, while 39% employ a consistent process without relying on a specific methodology, 37% adopt a structured approach based on established techniques and tools.
Based on these statistics, Cristina Mihăiloaie, a Strategy and Performance Management Expert and Chief Operating Officer at The KPI Institute, explained in a webinar that deliberate strategy planning is the predominant approach in the MENA region. Deliberate strategy planning is a structured process in organizations, where a clear strategy is developed through a strong top-down and bottom-up engagement, ensuring high strategy awareness and effective communication.
However, Bori Péntek, a Management Consultant at Systaems who specializes in organizational development and human resource management, believes that deliberate strategy planning is too complicated to achieve success on its own, “Mostly, it offers an illusion of stability that is not there anymore in the external or internal environment. A lot of things have to work very well for the deliberate strategy to work.” Thus, achieving effective strategy planning in the MENA region requires balancing structured formal methods with adaptable informal approaches or emergent strategic planning. Emergent strategic planning allows organizations to adapt to change by prioritizing flexibility and iterative processes over traditional linear methods. Implementing such an approach is also shaped by the organization’s size and unique industry characteristics.
Moreover, identifying potential obstacles early enables proactive risk management. This approach allows organizations to create effective contingency plans that minimize risks and enhance their strategies. Once the plan is established, the focus shifts to strategy measurement—monitoring progress using key performance indicators (KPIs), frameworks, target setting, and automation to ensure objectives are met.
In the MENA region, the balanced scorecard (BSC) continues to be the most widely used performance management system (PMS) with 40% of respondents claiming their organization uses the framework. It is followed by objectives and key results (OKRs) at 34%, which has grown by 70% in popularity compared to last year due to its short-term focus that boosts agility and flexibility. However, many still claim that there is no formal PMS in place (36%), a significant increase from 24% in 2023.
Moreover, a large proportion of organizations in MENA continue to face challenges in working with KPIs, with 32% struggling to select the right KPIs, 20% having difficulty aligning KPIs and targets across the organization, and 17% encountering issues in collecting performance results for KPIs.
With Bori’s experience as a management consultant, she shared, “Irrespective of whether you use BSC or OKRs, you’re going to have these challenges. It’s not about selecting one system and just going along with it. It’s about leveraging the strength of each system by thinking wisely about where they can be used.”
Thus, it is recommended that organizations consider creating a hybrid PMS to overcome challenges related to KPI selection, target setting, and aligning strategic initiatives with broader organizational goals. A hybrid system combines KPIs to track routine business activities with OKRs to assess the success of strategic initiatives. This approach ensures that day-to-day operations are efficiently managed while strategic goals are clearly defined and actively pursued.
Building on strategy measurement, the focus now shifts to execution, where organizations turn plans into results. This phase involves overcoming challenges such as fostering collaboration, integrating new technologies, and adapting to market changes. As globalization and digital transformation reshape industries, translating strategy into results has become more complex. Effective execution also relies on strong project management, initiative prioritization, and organizational agility, ensuring businesses remain adaptable in a dynamic environment.
In the MENA region, most organizations (39%) report success in strategy execution, while a substantial number (44%) remain neutral about their execution capabilities. When asked about the reasons for strategy failure, the top three responses were ineffective cross-functional collaboration (42%), lack of leadership support (40%), slow decision-making and approval (33%), and insufficient resources for projects to succeed (33%).
To address cross-functional collaboration, Cristina advised nurturing the right rituals. “Procedures become quickly obsolete, but rituals are what we do and how we do it, are the unwritten rules that govern the workplace. It’s not necessarily about the work procedure, it is more about how people come together and get things done.”
She also added that it’s important to create multidisciplinary teams rather than work in silos, to have regular performance meetings and use KPIs to understand the business better, to challenge selves constructively, and to promote transparency and collaboration in problem-solving.
The State of Strategy Management Practice – 2024 MENA Region Report can serve as a starting point—a guide to navigating the complexities of strategy planning, measurement, and execution. This report, a collaboration between The KPI Institute and Systaems, explores challenges and success factors in business planning, strategic transparency, performance management systems, KPI deployment, project management, organizational agility, AI adoption, automation, and more. It gathers insights from executives, managers, and strategy experts, while also featuring best practices shared by professionals in the field. Click HERE to download the full report.
