Who Decides Metrics? LO8338

Virginia I. Shafer (vshafer@AZStarNet.com)
Fri, 5 Jul 1996 23:08:22 -0700 (MST)

Was: Empowerment Workshop LO8300

Andy Rowe writes:

> Just two small queries:
>
> a) Who decides the nature of these metrics, and which metrics are
>the most important ? (i.e. it may not be possible to reach all targets at
>all times)
> b) If there are major changes in the organization's environment in
>the future, who decides whether to shift the 'goalposts' and to where?

In response to the first question, the customer SHOULD determine the
nature of the metrics, but all too often the decision is made by those
trying to "look good in the shower." The most important metrics are the
ones that indicate customer satsifaction. For without customers, there is
no throughput, and there can be no profits.

This also answers the second question. The significant environmental
changes would be those resulting from changes in customer requirements.
The metrics would be modified to reflect those changes. Organizational
leadership should be ensuring the measurements collected tell them what
they need to know. Are the customers satisfied? What can be done to
increase their satisfaction?

Now, for those who think the stockholders are the customers--the metrics
will never lead to "employee empowerment," because the wrong things will
be measured. Metrics then will focus on employee performance rather than
meeting the needs of the customer. As a matter of fact, isn't that what
we see in most places of business today? More time and energy spent
measuring employee performance rather than the satisfaction of the
customers?

What do you all see?

-- 

Ginger Shafer The Leadership Dimension "Bringing Leadership to Life" vshafer@azstarnet.com

Learning-org -- An Internet Dialog on Learning Organizations For info: <rkarash@karash.com> -or- <http://world.std.com/~lo/>