When I started with coaching using the Metronomics system, I had a ton to unlearn about metrics from my previous life as data consultant at Keboola. I don’t believe any of what I previously knew was wrong – just not necessarily always applicable or relevant as a performance management tool. Actually bringing the two points of view together is a better description of what I went through during that stage.
The main question is one of focus. True, you can’t improve what you don’t measure. However, there are only so many metrics you can effectively consume – and drive action from. So, how do you decide what are the key measures to keep a keen eye on?
My fellow Metronomics coach Ged Roberts (hello, Sydney!) gave us the following questions during our Open Office hours one day:
- What SHOULD you measure
- What CAN you measure
- What DO you measure
They are a great starting point for the conversation.
Often, there’s something we SHOULD measure that we CAN’T – there is no data, no process etc. Equally, often we DO measure something we SHOULDN’T only because we CAN. Why is this approach bad? Again, focus. Optimizing something that shouldn’t exist carries a massive opportunity cost.
At any level (whether it is company as a whole, department, team or even personal performance), we can categorize the possible metrics using these two to three axis:
- Severity of impact
- Rate of change
- Timing of impact
We all heard the term “vanity metrics” – generally those would be the ones who change often and therefore invite attention, but have negligible true impact.
The Timing of impact dimension separates after-the-fact analysis from alarms.
Often overlooked are metrics that don’t change every day, but can change ANY day; and if they do, there’s a big impact. People hate such metrics because they are boring to maintain. Until they aren’t….
Are you measuring what really makes your business tick? Do those metrics have clear definitions, understood by all, and clear ownership by team members truly accountable for them?
