Why is choosing appropriate performance indicators important for data-driven decision-making?

Performance indicators guide behavior, priorities, and decision-making. In data-driven decision making, selecting theright indicators ensures alignment with an organization’s definition of success. Metrics determine what is measured, monitored, and improved.

If indicators are poorly chosen, organizations may optimize the wrong outcomes, leading to unintended consequences. Well-aligned indicators translate strategic goals into measurable targets and ensure that analytics support meaningful results.

Rules, motivation, and compliance may be secondary effects, but the primary purpose of performance indicators is strategic alignment. Therefore, the correct answer isC.