Metrics_ How to Improve Key Business Results - Martin Klubeck [45]
I understand if you choose to believe the gas gauge, the thermometer, or the digital clock—which are single measures. But, when you’re looking at metrics, which are made up of multiple data, measures, and information, I hope you do so with a healthy dose of humility toward your ability to interpret the meaning of the metric.
This healthy humility keeps us from rushing to conclusions or decisions based solely on indicators (metrics).
Metrics are a tool, an indicator—they are not the answer and may have multiple interpretations.
I’ve heard (too often for my taste) that metrics should “drive” decisions. I much prefer the attitude and belief that metrics should “inform” decisions.
Accurate Metrics Are Still Simply Indicators
Putting aside the possibility of erroneous data, there are important reasons to refrain from putting too much trust in metrics.
Let’s look at an example from the world of Major League Baseball. I like to use baseball because of all the major sports, baseball is easily the most statistically focused. Fans, writers, announcers, and players alike use statistics to discuss America’s pastime. It is arguably an intrinsic part of the game.
To be in the National Baseball Hall of Fame is, in many ways, the pinnacle of a player’s career. Let’s look at one of the greatest player’s statistics. In 2011, I was able to witness Derek Jeter’s 3,000th hit (a home run), one of the accomplishments a player can achieve to essentially assure his position in the Hall of Fame (Jeter was only the 28th player of all time to achieve this). The question was immediately raised—could Jeter become the all-time leader in hits? The present all-time leader had 4,256 hits! Personally, I don’t think Jeter will make it.
The all-time hits leader was also voted as an All-Star 17 times in a 23-year career—at an unheard of five different positions. He won three World Series championships, two Golden Glove Awards, one National League Most Valuable Player (MVP) award, and also a World Series MVP award. He also won Rookie of the Year and the Lou Gehrig Memorial Award and was selected to Major League Baseball’s All-Century Team. According to one online source, his MLB records are as follows:
Most hits
Most outs
Most games played
Most at bats
Most singles
Most runs by a switch hitter
Most doubles by a switch hitter
Most walks by a switch hitter
Most total bases by a switch hitter
Most seasons with 200 or more hits
Most consecutive seasons with 100 or more hits
Most consecutive seasons with 600 at bats
Only player to play more than 500 games at each of five different positions
This baseball player holds a few other world records, as well as numerous National League records that include most runs and doubles.
In every list I could find, he was ranked in the top 50 of all-time baseball players. In 1998 The Sporting News ranked him as the 25th and The Society for American Baseball Research placed him at 48th.
So, based on all of this objective, critically checked data, it should be easily understood why this professional baseball player was unanimously elected to the National Baseball Hall of Fame on the first ballot that he was eligible for.
But he wasn’t elected.
His name is Pete Rose. He is not in the Baseball Hall of Fame and may never get there. If you look at all of the statistical data that the voters for the Hall use, his selection is a no-brainer. But the statistics, while telling a complete story, lacks the input that was taken into account—specifically that he broke one of baseball’s not-to-be-breached rules: he legally and illegally gambled on professional baseball games.
In the face of the overwhelming “facts” that Pete Rose should be in the Baseball Hall of Fame, the truth is in direct contrast to the data.
Even if we look at well-defined metrics that tell a full story,