What’s wrong with performance metrics

By  via leanceo.com   Article

6 Problems with Performance Metrics

“1. Many metrics are simply irrelevant to the work being done.  Information gets gathered, but no action is taken.  Take a look at the performance metrics in your business and ask yourself, “When was the last time we took an action, based on this number?” …

2. Measures are used as a weapon.  Dr. W. Edwards Deming often said, “We need to drive fear out of the workplace.”  … When management does act on a metric, they don’t look at the business process.  Instead they focus on someone, some (other department) or some outside factor to “blame” causing people to game the system and to point their fingers elsewhere when problems arise.

3. The metrics selected are too general or high a level to provide information that someone can take timely action to address..  An important result gets looked at, but it is impacted by so many variables it is difficult to know which one moved the dial. …

4. The metrics shows a result, but it comes too late to make a corrective action.  This is a problem with output-based metrics like: on-time deliveries, total production, total transactions processed, etc.  By the time a problem is discovered, it is too late to do anything about it. …

5. The wrong information is gathered, and the resulting changes that get made to the process are at best neutral and likely do more harm than good. A classic example of this is “Earned Hours” in many manufacturing operations.  In a desire to keep people busy, earned hours leads them to stay busy making something, rather than focusing on key customer needs.

6. Finally, metrics don’t start with the customer in mind.”

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