{"id":88,"date":"2014-02-27T19:50:19","date_gmt":"2014-02-28T00:50:19","guid":{"rendered":"http:\/\/n2value.com\/blog\/?p=88"},"modified":"2014-03-02T13:13:00","modified_gmt":"2014-03-02T18:13:00","slug":"the-measure-is-the-metric","status":"publish","type":"post","link":"https:\/\/n2value.com\/blog\/the-measure-is-the-metric\/","title":{"rendered":"The Measure is the Metric"},"content":{"rendered":"

There is a maxim in management circles to use data-rich methods of management.\u00a0\u00a0Peter Drucker is reputed to have said, \u201cWhat gets measured gets managed.\u201d Clearly better than managing by the hem of one\u2019s skirt (or <\/span>seat of one\u2019s pants)<\/span>, data-driven management allows for assessment of measured items.<\/span>
\nIt is interesting to consider the perturbations of this statement:<\/span>
\n-if it can be measured, it can be managed (implying causality)<\/span>
\n-if it can\u2019t be measured, it can\u2019t be managed (negative causality)<\/span>
\n-if it can\u2019t be measured, it doesn\u2019t matter (reductio ad absurbum)<\/span>
\nYou can pick for yourself where in the spectrum you lie, and how far from Drucker\u2019s original statement you are.<\/span>
\n\u00a0<\/span>
\nBut there is another issue in measurement that isn\u2019t as well addressed – the influence that the measure itself has on what is being measured.\u00a0\u00a0 This is what is known as an observer effect<\/i> in Physics – simply measuring perturbs the system.\u00a0 The Heisenberg uncertainty principal has been cited like this (that\u2019s actually NOT what the Heisenberg says, but that\u2019s beyond the scope of this discussion).<\/span>
\n\u00a0<\/span>
\nSo, let\u2019s acknowledge that observation, or measurement changes what is being measured itself.\u00a0 An observation, or \u2018measure\u2019 of X (insert variable here \u2013 productivity, speed, outcome, etc..) is performed.\u00a0 It is compared to a standard, or \u2018metric\u2019 is performed.<\/span>
\n\u00a0<\/span>
\nFor a process or an person, there may or may not be established standards of measurement.\u00a0 Therefore, a baseline or initial measurement becomes the metric to compare future measurements against.\u00a0 As process improvement or skill improvement happens (hopefully), subsequent metrics should improve in both accuracy and value.<\/span>
\n\u00a0<\/span>
\nLet\u2019s consider a human measure and its associated metric.\u00a0 A manager may wish to evaluate his employees by comparing their productivity to an established range of productivity.\u00a0 The employee is being measured, and is being compared to a metric.<\/span>
\n\u00a0<\/span>
\nBut employees aren\u2019t stupid.\u00a0\u00a0 Even if they have not been told that they are being measured, when they see the difference in their performance reviews as compared to their peer\u2019s performance reviews, they figure it out.\u00a0 And those employees with performance reviews that didn\u2019t sit right with them become more diligent in their work, to achieve a better performance review next time.\u00a0 Some employees will even figure out that they are being evaluated, and up their game before the performance review.<\/span><\/p>\n

 <\/p>\n

\"Positive<\/a>
Positive feedback loop in a simple system<\/figcaption><\/figure>\n

So, by the mere act of being measured, we change what is being measured. \u00a0The measure is the metric.<\/span><\/p>\n

And it shouldn’t be too hard to figure out that WHAT you measure and WHAT you choose to be the metric are more important than you think.<\/span><\/p>\n

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