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The Causality of Measurements

We all like to think that metrics are perfectly objective.  Interestingly enough the very metrics themselves can influence behavior.  The real question that management should ask before they deploy any measurement system is “what is our goal?”  From there, measurements should be identified that not only measure movement towards the goal but also reinforce the behavior of individuals to move towards the goal as well.  For example, measuring performance based on the raw number of changes is a dangerous metric as it doesn’t tale failed changes into account.  Manufacturing long ago realized that piece rate measurements needed to take the net good final count into consideration because otherwise people just pushed product through as fast as they could regardless of quality.  In Visible Ops, this is why we focus on a framework of metrics including the change success rate as an indicator of changes that were able to be implemented according to plan.

 

The selection of the metrics, the communication of their intended use, how they are reviewed, and how they are linked to compensation will all affect behavior.  For Visible Ops to succeed, people must understand the goal and how the metrics used allow for everyone to monitor progress towards the goal.  As Eliyahu Goldratt used to say, “Tell me what you are going to measure and I will tell you how I am going to behave” and he was right.

Published Monday, April 03, 2006 2:21 PM by George Spafford
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Comments

# re: The Causality of Measurements

So often times management doesn't ask the question - what is our goal. And the results suffer for it. Good insight
Wednesday, April 05, 2006 10:07 AM by admin

# re: The Causality of Measurements

Blog is looking great.

Cheers,
Grant
Saturday, April 08, 2006 11:26 AM by gcastner

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