Who Decides Metrics? LO8361

Rol Fessenden (76234.3636@CompuServe.COM)
07 Jul 96 20:22:18 EDT

Replying to LO8338 --

Andy asks:

> 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?

=== End quote ===

You have to be able to assess all the stakeholders' performance and
productivity. Customers come first without question. However, suppliers,
employees, and stockholders all add value to the process.

It is possible -- AT&T Visa may be an example -- to be outstanding at
servicing the customer, but still not be profitable. Unless there is a
sugar daddy, that is not a successful strategy. Therefore, customer
metrics alone, in the absence of metrics around the rest of the
participants, can be a bad strategy. Suppliers and employees add tangible
value, and need to be productive in order to make the customer focus
successful. Stockholders require a certain return or they withdraw their
support.

Therefore, these are a minimum.

Typically senior management approves a change to the goal posts. They
receive recommendations from people closer to the front lines. They are
likely to act on the recommendations if the people have proven themselves
reliable in the past, and if the people have justified the need to change
the standards.

-- 

Rol Fessenden LL Bean, Inc. 76234.3636@compuserve.com

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