Metrics_ How to Improve Key Business Results - Martin Klubeck [48]
Even in the case of automated-call software, the results are only indicators.
Quantitative data, while objective, are still only indicators. If you don’t know why the numbers are what they are, you will end up guessing at the reasons behind the numbers. If you guess at the causes, you are guessing at the answer.
Metrics (indicators) require interpretation to be used properly.
I advocate using triangulation (see Chapter 7) for getting a better read on the full answer to any root question. This would direct us not to take qualitative or quantitative data alone. The great debate between which is better is unnecessary. You should use some of each in your recipe.
Recap
The following are principles to remember:
Metrics are only indicators.
Metrics are not facts. Even when you have a high level of confidence in their accuracy, don’t elevate them to the status of truth.
The only proper response to a metric is to investigate.
When you tell the story by adding prose, you are explaining what the metrics are indicating so that better decisions can be made, or improvement opportunities identified, or progress determined.
There are two main categories of indicators: Qualitative and Quantitative. Qualitative is subjective in nature and usually an expression of opinion. Quantitative is objective in nature and compiled using automated, impartial tools.
Metrics by themselves don't provide the answers; they help us ask the right questions and take the right actions.
Metrics require interpretation to be useful.
Even the interpretation is open to interpretation—metrics aren’t about providing truth, they’re about providing insight.
Conclusion
Metrics are only indicators. This doesn’t mean they aren’t valid or accurate. Even the most objective, accurate, and valid metrics should only be treated as indicators. From my days in the Air Force, I learned that “perception is reality.” This is true for metrics. One of the major reasons I insist on providing an explanation to accompany your charts, graphs, and tables is to limit the variance in perceptions of your metrics. The interpretation of your metrics should not be left up to the viewer. You should do the work and due diligence, and investigate what the metrics are telling you. You should take the results of your investigation to form thoughtful conclusions based on data. These should be provided in the explanation for the metric.
You will then do your best to sell your interpretation of the metric to your audience. Even with that, you have to accept that your interpretation is open to interpretation by those viewing your metrics. You also have to accept that your well-defined and fully told story is, in the end, only an indicator. It should be a well-explained indicator and one that your diagnostics have correctly interpreted; but it is an indicator nonetheless. This requires healthy humility on your part.
Remember, metrics are only a tool. They are not meant to be more.
Using the Answer Key
A Shortcut
This chapter marks the beginning of the practical portion of the book. We’ve covered a lot of theory and concepts in the first part, which should provide a foundation for doing the actual work.
The Answer Key is a tool for helping ensure you have the right answer to your root question. It works with the majority of organizational improvement questions. It will also give you ideas about other areas you may want to measure. You’ll get the most benefit when you use the Answer Key to work on organizational improvement efforts.
What Is the Answer Key?
The Answer Key starts with the defining point of any metric: the need for information, the root question. The Answer Key won’t work for every root question, only ones concerning the health of the organization. The health of the organization covers the wide range of questions and needs we usually develop metrics for. Most root questions, especially in a business, revolve around how well the organization is functioning. Most Balanced Scorecards (see the box) and questions about customer satisfaction fit under this umbrella.