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Expectations

How to View Metrics in a Meaningful Way

If the Answer Key is the secret to unlocking the development of a useful metric program, the use of expectations is the keychain. Expectations allow you to change many of the common negatives toward measurement into productive improvement.

Don't Choose Poorly

I love the line in Indiana Jones and the Last Crusade (1989) when the Grail Knight matter-of-factly announces, “he chose poorly.” There were dozens of cups to choose from and the villain chose the wrong one. It was understandable, though. He chose the most ornate, jewel-bespeckled chalice on the table.

Managers often pick the flashiest looking tools, and are disappointed by their inadequacy. I want to help you avoid “choosing poorly.” The fear, uncertainty, and doubt around all metric programs stem from the misuse and abuse of the measures, in turn causing harm to those who are asked to provide the data. At times, this is a result of misguided or malicious management practices. Because I am an optimist and believe fully in the greater good, I believe that the misuse of metrics is rarely due to intentional actions. Most of the time, the abuse of metrics occurs because leaders are misled by any one of the deficient management techniques that use metrics improp-erly. These include the following:

The use of stretch goals

Measures as goals

Targets and thresholds

Incentive programs based on measures

These techniques may seem quite innocent and proper. There are authors, experts, and consultants who promote each, if not all, of them. Even successful CEOs will applaud the use of these “tools” for improvement. Do not be fooled: these are misuses of metrics, and any success attained by these paths is temporary.

Let's look at each briefly, and then introduce a simpler solution.

The Use of Stretch Goals

Using goals to strive for success is a good thing. The misuse of this concept by creating “stretch goals” and using measures as goals is where leaders fall astray. Goals in themselves can be a great tool. Vision, mission, and goals are a potent combination for steering an organization forward. But the misuse of goals can cause an organization's efforts to crash and burn.

Invariably, stretch goals are not independently identified for self-improvement. In business I find that managers think it's a good tool for motivating the workforce. Achievable goals aren't enough. “Stretch” goals are the latest silver bullet. The leader sets stretch goals for a department or staff member—and voila! The goal is attained. The leader looks brilliant, the department/ worker is applauded, and everyone is happy. Except that in most cases, the stretch goal was dictated (rather than collaboratively agreed upon) and the workers have no ownership. No ownership means less pride in the accomplishment.

The stretch goal is typically a big task to be achieved. This is fine if it ends there. But the school of thought is to upgrade the first stretch goal with a tougher, bigger stretch goal the next year. And so on, and so on. The workforce eventually catches on to this.

I can clearly hear the orator in the coliseum announcing, “Let the games begin!”

The manager keeps pushing to see how much he can get out of the workforce. The workforce wisely realizes how late they have to achieve the goal within the required time period (finishing early would mean a new stretch goal before the year is out—better to deliver on time than early). Stretch goals do not belong to the organization—and they definitely do not belong to the workforce. No, these goals are solely owned by management.

Another unintended consequence of stretch goals is that other work will suffer. Work that may have been performed to an exemplary level is reduced to “good enough” since it is not a part of the stretch goals. It is hard to stay focused on the big picture when mini-goals are set up as the standard of excellence.

Measures as Goals

Another common problem lies in the misuse of the measures of success (MoS) as the goal itself, instead of focusing