When Yousef Zohdy began working with Saudi public sector organizations in the early days of Vision 2030, one question seemed to surface again and again: how do we demonstrate progress?

“The instinct was to lean on KPIs,” he reflects. “They offered clarity. But over time, we began to ask ourselves: are we measuring what truly matters?”

Zohdy, a strategist specializing in design and execution at Palladium, has spent the past several years working alongside government entities in the Kingdom. Key Performance Indicators (KPIs) were introduced with good intentions: to ensure accountability, transparency, and alignment with Vision 2030. Yet in practice, he says, their use has at times obscured the bigger picture.

“There can be a tendency to celebrate green dashboards,” he says. “But that sense of progress is misleading when it becomes more about the metric than the mission.”

Saudi Arabia’s Vision 2030 aims to reshape the Kingdom’s economic and social landscape, reducing dependency on oil and enabling a more diversified, innovation-driven economy. KPIs are meant to guide this transformation, but they must be understood in the right context.

When Measurement Misses the Point

Zohdy provides an example: “Say a ministry is reporting rising Foreign Direct Investment (FDI) numbers. But if we examine the details of those numbers and we see that the investments aren't aligned with the sectors outlined in the national strategy, those are merely transactional and not transformational. Even though they appear to be positive, our metrics would not be indicating if we are making progress that follows our strategy.”

The problem, he suggests, isn’t with KPIs themselves, but with what they are allowed to represent. “Not everything important can be captured in a metric,” he says. “Public trust, social well-being, long-term value; these are harder to quantify, but they matter deeply.”

He then points to the education sector as an example of how a narrow focus on metrics can fall short of capturing what truly matters, where even improved results in enrollment and exam scores can mask shortfalls in the quality of learning.

“We have seen schools focus narrowly on standardized test results which can lead to educators 'teaching to the test' while qualitative feedback from students and teachers suggested deeper issues in critical thinking and creativity,” he explains.

Incorporating these qualitative inputs through surveys, interviews, and lived experience offered a richer, more honest view.

“KPIs are part of the story,” he says. “But if we don’t listen to the people behind the numbers, we risk missing the meaning.”

He is quick to note that this is not just a Saudi challenge. “Around the world, there’s a temptation to reduce complex goals to numbers. But governance requires nuance.”

From Evaluation to Learning

For KPIs to become truly useful, Zohdy believes, they must be reframed as tools for reflection, not judgment.

“If a KPI turns red, the response shouldn’t be fear or blame. It should be curiosity. What does this tell us? Where are the opportunities to improve?”

This shift requires both cultural change and structural support. Zohdy has worked on training programs that encourage civil servants to use data diagnostically. In these settings, KPIs are treated as conversation starters, not finish lines.

“We also need performance systems that evolve. Strategies change. Priorities shift. If the indicators remain static, they lose relevance,” he says.

Rethinking the Purpose of KPIs

Zohdy doesn’t advocate for fewer KPIs, but for more thoughtful ones.

“A good KPI forces a conversation,” he says. “It challenges us to ask: is this the right path? Are we delivering real impact, not just activity?”

He stresses that performance measurement must serve strategy, not replace it.

As Vision 2030 moves from planning into deeper implementation, Zohdy believes Saudi Arabia has a chance to lead by example.

“There is an opportunity to build performance systems that are not only rigorous but also responsive, systems that learn, that adapt, and that reflect the lived realities of citizens,” he says.

For Zohdy, the goal is not simply to count progress, but to understand it. “Real transformation is often quiet, gradual, and hard to quantify. But it’s there, and it matters.”

Yousef Zohdy is a Director at Palladium Saudi Arabia with over 16 years of experience in public sector strategy and transformation. He partners with government leaders across the Gulf to design and deliver high-impact initiatives in labour, education, defence, and social development. His work has helped shape flagship programmes including performance frameworks and strategic systems for government clients and partners.