Sunday, November 3, 2013

There's a Difference between Counting and Measurement

Katie Paine makes it very clear that counting and measuring are very different in her book Measure What Matters. 

Paine describes counting as simply adding things up and getting a total. As for measurement involves much more than that. She describes measurement as follows:

  • Taking the totals (from counting) analyzing what they mean
  • Using the meaning to improve business practices
  • Provides the data necessary to make sound decisions
  • Helps set priorities, allocate resources, and make choices
  • Without it
    • hunches and gut feelings prevail
    • mistakes get made and no one learns from them 
Paine then goes further into some of those items as well as others to describe why they are important.

  • It helps Allocate Budget and Staff
  • Gain a better understanding of the Competition
    • a company needs to know how they "stack up against' rivals
      • measurement gives insight into competitive strengths and weaknesses 
  • Strategic Planning
  • Measurement Gets Everyone to Agree on a Desired Outcome
    • a company can't decide what form a measurement program is going to take without an agreed set of goals
      • that reason alone maybe a reason to start measuring 
  • Measurement Reveals Strengths and Weaknesses
    • can compare data to see what strategy works best in certain situations
  • Measurement Gives a Reason to say "No"
    • making decisions base on your gut rather than data leads to an overworked staff and unclear priorities 
    • data on results of previous programs, frequently gain the leverage needed to turn down requests that will be a waste of time or resources

After reading, it seems as if I never realized the number of things that could be measured, what should be measured, and how those measurements could affect an organization. I found myself falling into some of the myths that Katie pointed out. For example, #2 focuses on the idea that measurement will create more work for employees. It seems reasonable, but if a company doesn't measure or keep track of a budget that is where more work comes in.

No comments:

Post a Comment