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Sounds like a lot of people in this thread are confusing metrics with measures. A metric is just that. Its just a number. It means nothing except giving you hi
by nhumrich 7y ago
Sounds like a lot of people in this thread are confusing metrics with measures. A metric is just that. Its just a number.
It means nothing except giving you historical context over time.
A measure is when you expect a specific quota or compare a metric against another.
Goodharts law, "a metric that becomes a measure ceases to be a good metric".
In other words, once its a measure, its gamed, and useless.
So how do you prevent this? Let people tell their own story. Have metrics, no quotas. Dont compare teams. Dont compare individuals.
Have metrics, lots of them. Preferably enough thats its impossible to game all of them. Only let the full picture tell the story, never get too focused on one specific metric.
This applies to everything. Too focused on ARR? Guess what, you will make terrible deals at a discounted rate, have high churn, and bad customer support. Too focused on churn? You will hold on to customers you should let go. You have to always look at the bigger picture.
Only metrics, no measures.