Measurement and Unforeseen Results LO10055

Keith Cowan (72212.51@CompuServe.COM)
18 Sep 96 21:11:46 EDT

Replying to LO10010 --

Cherry Vanderbeke <> asks
>Keith Cowan in LO9873 said:
>"So, [] dramatic improvements can be had by simple measurements. Now I
>happen to believe that measuring forecasted accuracy in product sales
>generates undesirable side effects. That is the subject for another time.
>This is why systems thinking is so critical."
>It is now "another time" and this subject of side effects and unforeseen
>results is of great interest to me! Thanks for raising it, Keith.
>....lots of good stuff snipped
>Any other thoughts, anyone? What experience do others have of designing,
>developing, implementing, refining new measurements?

Sales forecast accuracy is a measure of a control organization. Being
above forecast is as inaccurate as being below. People that want to
satisfy the system will hide orders until they are properly forecast. This
will delay processing and delays the ultimate fulfillment on the customer
need. It slows down the pace of the organization and generates a penalty
mentality when someone brings in an unforecast order.

The anticipation of side effects needs brainstorming, a leap of faith, AND
built-in feedback mechanisms to detect undesirable behaviour. For every
measurement, there will be side effects!

Thanks for your help. Best regards....Keith


Keith Cowan <72212.51@CompuServe.COM>

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