In Business: Measuring What's Important
You measure what is important. If you are not measuring the right things, then the right things will not happen.
In any organizations there are measurements (“metrics”) used to determine progress or performance. These are discussed and reviewed in meetings and reports. They become the immediate goals the organization and the individuals. Because people’s performance and, to a certain extent self-worth, are measured by “the numbers” they will become the most important determinant of what people to do day-to-day.
What is measured becomes what is discussed which becomes what is important. As a result what you measure will come to represent the true values and goals of the organization—both internally and, eventually, externally.
There are metrics which are required for day-to-day operations, intermediate goals, and even primary goals and values. Measuring only a sub-set can result in a lack of focus on the critical long-term goals and values. Immediate and day-to-day goals must play into the long term goals or your focus will become near sighted.
What do your metrics say about your organization?
—p
Posted by Paul Gernhardt on Monday, December 18, 2006