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The feature that distinguishes a well designed metric is exactly that. Specific enough to ensure alignment with broader strategic objectives, general enough not

The feature that distinguishes a well designed metric is exactly that. Specific enough to ensure alignment with broader strategic objectives, general enough not to dictate exactly how.

js8 8y ago
I think the point of the article is summed up in the sentence: "The key components of metric fixation are the belief that it is possible – and desirable – to replace professional judgment (acquired through personal experience and talent) with numerical indicators of comparative performance based upon standardised data (metrics)" Basically, it is a problem of trust. You're trying to replace trust in people with a metric which, in theory, lets you not to have trust in them. Personally, I think it is a foolish goal. You are effectively replacing the trust in people (which, admittedly, is vague) with trust in the metric (which connection to reality is vague). The vagueness has a reason - reality is complicated. Why not just tell people what the "broader strategic objective" is, instead of trying to come up with a metric that is an exact (and so necessarily wrong) description of it?
- philipodonnell 8y ago
  Trust is the wrong word, its more about alignment. I do trust that employees can exercise their professional judgement. I don't expect that every employee can perfectly align themselves behind a strategic objective without guidance. If my broader strategic objective is to cut costs by 15% allow more competitive pricing, the last thing I want is for every individual to define what that means to them and hope the math works out in the end.
  - js8 8y ago
    "I do trust that employees can exercise their professional judgement. I don't expect that every employee can perfectly align themselves behind a strategic objective without guidance." That's strange to me, because the former surely seems to be much more difficult than the latter.
jbay808 8y ago
Can you provide an example of a metric that meets this criteria?
- philipodonnell 8y ago
  Sure, say a company desires to broaden their customer base so they are less reliant on a small set of large customers. A goal could be "30% of net revenue should come from companies with less than $100M in revenue". Its strategic, specific and measurable (we are at 5% and need to get to 30%) but it doesn't say how. Focus on a specific industry? Launch a new product? Restructure the sales org?

The feature that distinguishes a well designed metric is exactly that. Specific enough to ensure alignment with broader strategic objectives, general enough not to dictate exactly how.

js8 8y ago

I think the point of the article is summed up in the sentence: "The key components of metric fixation are the belief that it is possible – and desirable – to replace professional judgment (acquired through personal experience and talent) with numerical indicators of comparative performance based upon standardised data (metrics)" Basically, it is a problem of trust. You're trying to replace trust in people with a metric which, in theory, lets you not to have trust in them. Personally, I think it is a foolish goal. You are effectively replacing the trust in people (which, admittedly, is vague) with trust in the metric (which connection to reality is vague). The vagueness has a reason - reality is complicated. Why not just tell people what the "broader strategic objective" is, instead of trying to come up with a metric that is an exact (and so necessarily wrong) description of it?

philipodonnell 8y ago
Trust is the wrong word, its more about alignment. I do trust that employees can exercise their professional judgement. I don't expect that every employee can perfectly align themselves behind a strategic objective without guidance. If my broader strategic objective is to cut costs by 15% allow more competitive pricing, the last thing I want is for every individual to define what that means to them and hope the math works out in the end.
- js8 8y ago
  "I do trust that employees can exercise their professional judgement. I don't expect that every employee can perfectly align themselves behind a strategic objective without guidance." That's strange to me, because the former surely seems to be much more difficult than the latter.

jbay808 8y ago

Can you provide an example of a metric that meets this criteria?

philipodonnell 8y ago
Sure, say a company desires to broaden their customer base so they are less reliant on a small set of large customers. A goal could be "30% of net revenue should come from companies with less than $100M in revenue". Its strategic, specific and measurable (we are at 5% and need to get to 30%) but it doesn't say how. Focus on a specific industry? Launch a new product? Restructure the sales org?