Metrics_ How to Improve Key Business Results - Martin Klubeck [30]
After I dropped my daughter off at class one day, the principal approached me. “Marty, we collected some data…” He knew I was a metrics expert. The fact that he was already “collecting data,” and that he led with that, gave me pause.
“Really?” I tried to stay non-committal. I love talking metrics, and like most people I also like talking about my profession. But, I can’t remember anyone who has ever been happy with the answers I give to their questions. Most people don’t have a root question. Most don’t want to be creative. Most simply want data to prove them right and that’s “simpler than possible.”
“Yes. We collected data on how successful the coupon book program was this year.”
“Uh huh.” I bit my tongue.
“I wanted to know if it was successful, so we counted how many books we sold.”
Without defining “success” and without looking for the root question, he did a couple of things he could have avoided. The good news was that I knew that it didn’t take much effort to collect the data—he just had to count how many books were left at the end of the year compared to how many the school had purchased.
He even built a nice chart showing the percentage of the total sold by week and overall.
“Nice graph,” I said.
“As you can see, we sold all of our coupon books a week before the planned deadline. So, I’m doubling our order for next year.”
“Really?”
“Sure, it was a tremendous success!”
“O-kay…” I couldn’t hold back a small frown.
In the short pause that followed, I actually imagined that I was going to escape with no further discussion.
“I know you well enough to know that you think I did something wrong. Come on, tell me.”
If this were a seminar instead of a book, I’d give you a test at this point. I’d ask you, “What did the principal miss? What should he have done? How might his conclusions be wrong? How might those errors be a problem?”
If this were a seminar, I’d give you five minutes to capture the answers. Since this is a book, if you want to try and figure it out, close the book now and take a shot.
I took the time to explain, as kindly as I could where he went wrong.
“John, it’s not that you did something wrong, but you might have missed something. I’d at the least ask you not to make a decision before you investigate further. The first thing I would do before going further is to define what you mean by “success.” Is it simply selling a lot of coupon books?”
“Sure. Isn’t it?”
“I truly don’t know. Why are you selling the books? What’s your purpose?” He nearly rolled his eyes. He felt I was making him state the obvious.
“To raise funds.”
“Ok. And you succeeded at that, right?”
“Yes.”
“And is that all you wanted to know?”
“Sure.”
“Really? Then why are you deciding to double your order next year? It seems that you actually wanted to know how many books you should order next year…”
“Well, yeah. If it was a success, I figured we’d increase our order.”
“And what would you have done if you didn’t sell them all? What if you sold only half as many as you ordered?”
“I don’t know. Probably order only three-quarters next year and try harder to sell them. Or maybe find a different fundraiser?”
“John, one of the things I encourage clients to do is determine how they will use the answers to their questions before they collect any data. So, I would have asked you—what will you do if the answer is ‘very successful?’”
“Tremendously successful!” He said with a smile.
“Tremendously successful. The point is, if you told me that you’d double your order I would help you get to your real question—which sounds like it’s ‘How many coupon books should I buy next year’ with the possible answer being anything from none—drop the program—to doubling the order.”
“What’s the difference?”
“Well, if we go with the new question, you’d look at your data differently, and you’d also collect some other data, like:
Who made your sales?
Who bought the