Measurement Madness: Recognizing and Avoiding the Pitfalls by Dina Gray

By Dina Gray

A clearer, extra actual functionality administration strategy

Measurement insanity offers a level-headed method of functionality administration, assisting leaders keep away from the often-bizarre accidental effects of KPIs. utilizing actual existence examples of dimension long gone incorrect, this ebook info how every one specific behaviour might have been foretold, and demonstrates what a supervisor must examine while growing measures and function dimension platforms. every one bankruptcy explains the behaviour when it comes to administration and organisational theories, concluding with guiding ideas to assist readers steer clear of the various pitfalls of well-intended functionality administration. With instances drawn from the documents of the world-leading Centre of industrial functionality at Cranfield collage, this beneficial consultant confronts the problems intimately and gives transparent, sensible recommendations that make functionality administration work.

Examples of bad administration through dimension are more and more displaying up within the press, from the UK's MP charges scandal to the dying of the banking quarter. even though objectives and rewards have lengthy led to weird and wonderful behaviours, those fresh examples have moved dimension, gift, and behavior to the leading edge of industrial administration once more. This e-book presents managers with transparent information towards a brand new technique. * Take a detailed examine how functionality and dimension are being misused * degree what is necessary, not only what is effortless to degree * learn the way over-emphasising goals can prevent development and function * Set the precise pursuits and present the perfect behaviour

With a special mixture of examples from the united kingdom, the USA, and world wide, this ebook offers theoretical and useful assist in addressing the problems and matters surrounding functionality administration. For the executive eager for precious metrics and extra exact studies, size insanity comprises key details and approach.

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Additional resources for Measurement Madness: Recognizing and Avoiding the Pitfalls of Performance Measurement

Sample text

On the other hand, measures provide strong incentives, and following these incentives is often the most rational and predictable course of action. In the example above, the inertia inherent in the performance measurement system produced a situation where the company’s strategic goals and shop floor measures were in conflict with each other, leading to the wrong incentives and dysfunctional behaviour. Different functions within an organization often have different priorities – the classic tensions between product design, manufacturing and marketing being a case in point.

This change had not been reflected in the company’s performance measurement system, and the airline remained “committed” to their obsolete set of performance metrics. LEARNING POINTS So what have we seen in this chapter? Essentially, measurement can become an addiction, and one of the key factors fuelling this addiction is the illusion of control that measurement seems to provide. This illusion promotes the idea that, if we could only “nail” the elusive drivers of performance with hard metrics, the task of managing performance would become easier and more straightforward.

Different people have different views of what is meant by performance measurement. 2 For example, if we are looking at “customers”, we could measure such aspects as satisfaction, loyalty or advocacy. indd 08/20/2014 Page 15 Performance and Measurement 15 about which aspect we are measuring and formalize the particular elements of the measure. As a minimum we need a definition; we need to specify how we will use the data; and we need to work out how we will derive value. If this is not done, data, on customer loyalty, for example, may be collected in different ways, analyzed in different ways, and interpreted in different ways.

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