Measured improvement is an essential part of improving your business. In order to improve your business, you may well use measurements or metrics in identifying and evaluating what needs to be done. The trouble is that all too often the aspects of a business which are developed are only those that are measured. This leaves two tough problems. The first is that whilst those aspects being measured are being improved, that could very well leave a great deal unimproved, simply because it isn’t measured.
Not only that, but just because aspects of the business have been measured and analyzed for improvements doesn’t guarantee that these are the right aspects to improve, or the most beneficial. If the only improvements ever made are those upon which our analysis and measurements are made, how can we be sure that we are measuring the right things, and therefore improving the right parts of the business? We need to make sure that what we do is of maximum benefit, and measurements certainly allow us to achieve that, identifying current events and responses, creating a degree of control and identifying problems.
Outputs over Inputs
However, even this isn’t the whole story. Because, whilst measuring the inputs and processes of a business or organization will result in limited progress and improvement, the really crucial aspect of measured improvement is the output – the end result. We can spend all the time we like analyzing and improving the internal mechanisms and processes, but if these are inherently flawed because everyone has become obsessed with improving the business rather than with its end goals, then little improvement can ever be achieved.
Let me give you an example of what I mean. I attend a great many presentations – sometimes as a speaker, sometimes as a listener. In almost every case, surveys are given out at the end for the listeners to evaluate the quality of the presentation. Metrics are important, and whether you’re looking to improve your business or organization, measurements provide the only real way in which you can step back and evaluate how you’re doing and what can be improved. However, measuring the inputs or processes doesn’t help maximize progress. It’s the outputs, the end goals, and the achievement of the objective, which should be measured.
A recent survey suggested that we should measure a presentation on a scale of 1 to 5. To help us further it suggested that a 4 was equal to outstanding. To my mind, a 4 is acceptable, but hardly outstanding. However, more importantly, what were we measuring? The speaker’s voice? Tone? Pace? The content, preparation, audience involvement? The weather outside? Ultimately, metrics can only help us improve if we can all be clear not only what we’re measuring but also how we’re to measure it. Of course, it almost goes without saying that this assumes that what we’re measuring makes sense, and provides enough useful feedback and information to allow for improvement.
For example, in measuring the presentation, shouldn’t we be looking at the goals and purposes of the presentation? Were we intended to have learned important information by the end of it, be able to achieve certain tasks, complete specific exercises, or apply new techniques? How well did the presentation manage to achieve these goals? It is these outcomes which need to be measured, not the inputs. If the outcomes fail to meet the desired level, then the result is failure and we have to identify ways in which they can be met in order to achieve success.
However, by focusing entirely on the inputs, the preparation and performance of the presentation, we’re taking our collective eye off the ball and ignoring the ultimate goal and purpose of the entire exercise as though it’s unimportant. Who cares what we learned as long as the presenter looked good, spoke well, was well prepared, entertained us with fabulous graphics, and was polite without abusing us.
Ultimately, for metrics to be of any value, they must fulfill three criteria:
- They must enhance and reflect the purpose or goal of the intervention or process. Ask yourself why you want a measurement at all, and ask yourself what the end purpose is of the process, organization, department or business. If you advertise yourself as being low cost, then this should be the yard stick by which your success is measured, not the quality of the meals in your cafe. Measured improvement is ultimately based on the desired result, not on the means to achieve it.
- Make your focus the quality of the work, not the measurements. Regardless of how many performance targets and metrics are used within the business, it is the customer’s satisfaction that will be the final measurement of a business’s success. I was called in to a call center once and noticed that the management had set up various targets including number of calls per hour, length of call and amount of time making notes after the call. But since the purpose of the call center was to arrange financial settlements with customers, these targets were pointless. After scrapping them and focusing instead on the actual purpose of the business, productivity shot up.
- Integrity of measurements. In order for your productivity measurements to be effective and valuable, they must be believable and trustworthy. Any doubt, any debate and they will be completely useless. The slightest disbelief will discredit them entirely. Metrics should be used to identify problems and highlight issues rather than to justify existing actions or processes.
If you are to have any chance at being able to improve your business then certainly taking measurements and using metrics will be essential in order for identifying issues and problems and evaluating the effectiveness and efficiency of your existing procedures.
However, unless your metrics fulfil these three criteria, focussing on outputs, not inputs, ensuring measurements target the purposes of the business, and are not merely self-justifying, and that they are beyond suspicion and identify problems, rather than support assumptions, then they may as well be abolished entirely. Focus on these criteria, and your measured improvement will be valid and a true reflection of the success of your business.
‘Helping Leaders build great organisations”
(C) Daniel Lock.
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