Consulting Consultants IT Consulting
Search 180systems.com       
News Letter Signup
Home
Portals
ERP
CPM
BPI
CRM
About Us
Our People
References
Clients
Services
Software Selection
Business Process Review
Business Case
Project Management
IT Audit
Corporate Diagnostic
HR Management
IT Infrastructure
Strategic Planning
Technology White Papers
Technology Seminars
News & Articles
180 Blog
ERP Systems1
BI2
PSA3
CRM4
SCM5
BPI6
Business Case
Sarbanes-Oxley
IT Strategy
IT Project Management
Office Productivity
Internet
IT Marketing
IT Security
HR
IT Humour
Buyers Guide
Software Selection
Business Case
Total Cost of Ownership
Software Implementation
Accounting Software
Distribution Software
Manufacturing Software
BI2
PSA3
CRM4
Implementation
Software Reviews
ERP Comparison1
ERP Reviews1
ERP Customer Survey1
BI Comparison2
BI Reviews2
PSA Comparison3
CRM Comparison4
Case Studies
Accounting Systems
Manufacturing Software
PSA3
CRM4
White Papers
ERP1
CPM7
Contact Us
Office
Careers
Site Map

Business Technology

Wednesday, July 26, 2006

It's time to stop measuring and start doing...

May 2, 2006 from Silicon.com - "Over the past few years I have been working in companies and other organizations including those in the health and education sectors where the introduction of performance metrics has had a profoundly negative effect.

In every case there has been a liberal application of simplistic thinking that has resulted in a vastly reduced overall performance with a combined increase in operational costs. How come? Very often those to blame are in political office and under pressure to show the electorate they are earning their elected position.

For sure, if you are to manage anything effectively you need measures, and if you are to improve performance you need metrics. But the first question to ask is: does it actually need managing and is there any space for improvement?

It is unfortunately a truism that most managers don't see that they are often in the way, can add no value and should just get out of the way. An awful lot of processes and activities just don't need managing in the first place. For those that do, they require a liberal application of intelligence and understanding. If you give people targets, they will achieve them; if you demand a change in performance from managers, they will show you one. In the first instance they will try and do your bidding but in the second they will resort to embellishing the truth, polishing the numbers and plain fiddling.

In the worst areas infected by the (modern) metrics disease we see irrelevant or conflicting requirements and targets, and more managers of metrics than those actually trying to achieve them.

The real killer? People stop becoming effective and turn the metrics game into a full-time career. In many countries we have police, medics and educators spending more time reporting than doing! So the supervisory overhead is very often the dominating portion of the overall spend and budget. This is a surefire route to failure in any system. Admin really ought to be less than 10 per cent and not 80 per cent of the budget.

So what is the solution - beyond good management that is? Once a set of sensible and minimal performance targets and metrics have been decided and agreed, automation is the only route to success. Just because something can be measured and recorded doesn't mean it should be!

In the worst case people will always resort to telling lies, gilding the truth and interpreting results in their favour. So most of the information created by such human systems is a travesty, waste of time, detrimental distraction and expensive hobby! In contrast, our machines will only tell it the way it is, provided the entry of data is also fully automatic.

All of this begs the question: why isn't modern management and politics up to the job? Simple! They are operating in some 18th century regime of quill pen and parchment thinking. Until we see the application of game theory, war gaming and situation modelling, combined with automated data recording, gathering and analysis, we will continue to see the waste and disruption continue to accumulate.

We have the technology but it seems we don't yet have the wisdom."

180 View - SMART (Specific, Measurable, Actionable, Relevant, and Timely) metrics should solve all the problems above.

Labels:

0 Comments:

Post a Comment

<< Home

 

 
1enterprise resource planning | 2business intelligence | 3professional services automation
4customer relationship management | 5supply chain management | 6business process re-engineering
  © 2004 One Hundred & Eighty Degrees Systems Limited. All Rights Reserved
Web Site optimized by Toronto Search Engine Optimization | resources