It's not about being good for shareholders. They are far away and generally know nothing about what is good or bad decision in long run. We have replaced human QC with computers in many industries. C-suite cares about company profit, middle management cares about KPI.
It's about maximizing individual management KPI despite being wrong for a company as a whole. Problems are for other guys/gals down the line.
so you could argue that those people setting the KPI is either incompetent, or they themselves benefit from such a KPI (at the cost of the company going down).
It's about maximizing individual management KPI despite being wrong for a company as a whole. Problems are for other guys/gals down the line.