Volume 8, #7 September 2010
Tread With Care
Three Common Metrics Missteps--and Where to Step Instead
You've probably heard the statement, "You can't manage what you can't measure." Unfortunately, many companies approach metrics in a well-intentioned but counterproductive way. Here we describe three common metrics missteps and explain why they are problematic.
Misstep #1: Standardizing metrics across the organization
Standardization is good, right? If everybody in your organization were measuring the same things, you could easily compare apples to apples, as the saying goes. The problem is that companies are filled not only with apples but with a veritable fruit salad of jobs and activities. If you measure only apples, then only those people working on apples will understand the metric. For everyone else, you'll be measuring the wrong thing. The apple metric simply isn't relevant to pear and pomegranate people. Instead of being useful, apple metrics just looks like extra work. In business, for example, measuring quality always seems like a safe bet. But if you are already producing consistently high quality output, measuring quality only wastes time and resources.
Metrics fail not because they're not accurate or not of interest, but because people are being asked to apply metrics that are irrelevant to their jobs.
Misstep #2: Measuring everything that's “important”
I just convinced you to measure relevant activities. But sometimes, mistaking importance for relevance, companies rush to measure everything that's important. I like to give an example everyone can relate to. Right now, are you wearing a blood pressure monitor? No? Why not? Isn't blood pressure one of the most important metrics reflecting your well-being? After all, if it drops too low or rises too high, you'll die!
The reason most of us don't constantly monitor blood pressure isn't because it's not important but because, in the absence of other symptoms, we don't need to measure it right now. In a corporate context, measuring everything that's important clogs the organization with information and steals attention from factors that need attention.
So what should you measure? The answer can seem counterintuitive: measure what you're not good at. For example, someone with bad knees who goes jogging should pay attention not to blood pressure but to factors that directly affect the knees, such as the impact of the terrain and the shock-absorbency of running shoes.
Measuring what you're not good at leads you to the critical few metrics that can actually help you improve outcomes.
Misstep #3: Believing that metrics will solve your problems
At its best, a metric informs you early, accurately and often, of what is happening relative to the success of what you're measuring. But it's critical to divorce the metric from the actions you take based on the measurement.
I have seen many metrics review meetings, which ought to be short and uncontentious, turn into lengthy problem solving sessions, and what do the participants leave the meeting with? Never wanting to do another metrics review again. For example, let's say you have a metric in place to monitor resources in the early phases of a new project. The metric tells you that 10 people should be assigned to the project at this point. You have only two. The metric has done its job perfectly, but the project will fail if you don't take action to de-scope, add schedule or assign eight more people to it.
Divorcing metrics from the actions associated with them helps metrics stay alive within your organization. People stop associating negative outcomes with the metric and instead begin to examine the decisions that lead to the outcome.
Metrics do not equal success. You can have great metrics, but if you make the wrong decision based on the metric, you'll fail.
These three missteps are just a brief introduction to the ways that metrics can hinder or help your organization. To dive in deeper and take advantage of a special "friends of Wayne" discount, plan to attend either of these upcoming 2-day workshops:
Find out more on PDC's Events page.
I hope to see some of you there. If you can't make it, feel free to call or e-mail me.
Sincerely,
Wayne Mackey
