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> Extremely well put. Any time a business decides on a metric / decision criteria, they introduce a strong incentive for their employees and managers to act acc

> Extremely well put. Any time a business decides on a metric / decision criteria, they introduce a strong incentive for their employees and managers to act accordingly. For some reason, leaders rarely seem to think hard enough about the possible outcomes. I’m so tired of this advice. Maybe metrics are bad, but the only thing worse than metrics is no metrics. Discouraging an action just because it doesn’t work 100% of the time doesn’t seem efficient either. The argument really should be that certain metrics are bad. Sure, propose a better one, but saying that leaders don’t think hard enough just because a metric turns out to have ill effects seems useless advice. How can you be certain in advance when you have thought hard enough? A better approach is probably to recognize that metrics are hard. Keep an eye on them, iterate, and be willing to make mistakes as that’s the only way to improve.

yebyen 4y ago
A better approach is to avoid min-maxing on metrics. You can be aware of metrics without making them your exclusive focus, bond and duty. A good rule of thumb is when you find yourself making "obviously bad decisions" because you know as a result the metric will go up, not because a generally favorable outcome for the business is expected to be the result, then you might be a redneck middle manager driving the metrics. No one should generally exercise tunnel vision and you should not be completely focused on metrics. (Although it might be OK to have one person in the business whose job is to maintain the tunnel vision, if you're telling the whole company to do this then you are likely creating blind spots that will come back to haunt you.) If you focus on driving up the metrics it can be at the expense of the vision. The business is not the metrics, and the vision is not fully defined by the metrics.
lordnacho 4y ago
Have some metrics, but don't make it obvious that the org must max this or that metric, or that x level must be reached. If you do that, the genie will find an ironic way for you to reach the targets without satisfying anyone. Add autonomy and judgement for the managers, along with a battery of metrics that aren't binding. Everyone will see that it doesn't help to sign up loads of customers while having loads of complaints coming through the helpdesk, or having loads of extra helpdesk staff with no sales. Where the balance goes is judgement. Success is one of those nebulous things that can't be described sharply, but people often have an idea of how things are going anyway.

yebyen 4y ago

A better approach is to avoid min-maxing on metrics. You can be aware of metrics without making them your exclusive focus, bond and duty. A good rule of thumb is when you find yourself making "obviously bad decisions" because you know as a result the metric will go up, not because a generally favorable outcome for the business is expected to be the result, then you might be a redneck middle manager driving the metrics. No one should generally exercise tunnel vision and you should not be completely focused on metrics. (Although it might be OK to have one person in the business whose job is to maintain the tunnel vision, if you're telling the whole company to do this then you are likely creating blind spots that will come back to haunt you.) If you focus on driving up the metrics it can be at the expense of the vision. The business is not the metrics, and the vision is not fully defined by the metrics.

lordnacho 4y ago

Have some metrics, but don't make it obvious that the org must max this or that metric, or that x level must be reached. If you do that, the genie will find an ironic way for you to reach the targets without satisfying anyone. Add autonomy and judgement for the managers, along with a battery of metrics that aren't binding. Everyone will see that it doesn't help to sign up loads of customers while having loads of complaints coming through the helpdesk, or having loads of extra helpdesk staff with no sales. Where the balance goes is judgement. Success is one of those nebulous things that can't be described sharply, but people often have an idea of how things are going anyway.