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Measuring What Matters (the missing piece)

13 May

Leaders:

If you know what a KPI is, give yourself a pat on the back. If you have a balanced scorecard, a visual management system, a dashboard, or some other way to track said KPIs, even better. With all this talk of Big Data and ROI and other data-loving phrases, you probably feel like a big damn deal. Bully for you.

Now – what if I were to go to your team and ask, what are your KPIs? Would they be able to answer?

Could they point to the balanced scorecard and confidently explain what it means? Can they describe how the data is trending? Tie their day-to-day work to the metrics?

If the answer to those questions is NO, then you are failing to measure what truly matters.

Business has fallen in love with metrics and scorecards and trends and graphs. Analysts are the new rock stars, the secret weapon of a strategic plan. Throw in the ability to build a visual tool, and that analyst becomes The One (like Neo, or Eddie Murphy in that awful movie with the bald kid). Executives want to see pictures, a snapshot, a cross-section of what’s going on in the business. It needs to look cool, to look smart. [Think I’m exaggerating? Look at how much infographics have exploded recently. You can argue chicken or egg – but leaders want them.]

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Unfortunately, these metrics often fail to make a meaningful connection to the people who actually do the work. They report numbers because they have to in order to make the pretty graphs, but then they turn back to their “real work” and don’t think about what the data is telling them. They are just trying to keep the work moving and ensure they meet their deadlines.

That’s where the leader comes in.

If the metrics truly matter, you will talk about them. Every day. Every team meeting. Every project launch. Every project wrap up.

If the numbers tell you a story about the business, share that story with your employees. Why the numbers are important. What they tell us about our impact on the business, the customers, the employees.

We leaders pretend like it’s the employees fault they don’t know what the metrics are. For goodness’ sake, we posted them on the shared drive!  What more do those darn employees want?!

Employees want – nay, need – context. And employees want – nay, need – their leaders to be the primary voice to provide that context. Supposedly leaders know what their employees do and the day-to-day reality of their world. Who better to be able to provide that line of sight from the work to the metric? Who better to explain why these metrics are helping the business improve? Who better to motivate employees to reach the target state?

At some point, you will notice that the metrics are not moving, or are moving in the wrong direction, or don’t seem to tell the right story. So what happens then?

That’s where the employees come in.

Your employees can help you understand whether your metrics are telling you what you really need to know about the business. They will share whether they think the KPIs make sense, and whether the targets are realistic…or even important. Your employees are the conduit through which the metrics come to life.

So the next time you start pontificating on the importance of your scorecard, think about the last time you looked at it with your team. If it’s been too long, stop pontificating and start communicating.

THAT’S what matters.

Metrics are for doing, not for staring. Never measure just because you can. Measure to learn. Measure to fix.

– Stijn Debrouwere

 

 
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Posted by on May 13, 2015 in Clarity

 

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