Measurement: The Good, the Bad and the Ugly
by Peter McGinn
Hospitals & Health Networks On Line, October 30, 2007
www.hhnmag.com
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An ingenious use of measurement is described by Michael Lewis in his book, Moneyball: The Art of Winning and Unfair Game (2003). He asked and answered the question: how could the Oakland A's consistently achieve one of the highest regular season winning percentages in baseball, when they also had one of the very lowest payrolls in the major leagues? The secret was in the measures used by Manager Billy Beane. He carefully tracked statistics -- like pitches required to retire a batter -- that were generally overlooked by the other teams who focused on obvious measures like batting average, stolen bases, etc. As a result of the insightful use of measurement, Beane and the A's organized and deployed their limited resources to the greatest effect, beating teams with more apparent talent.
Your theory of your business determines what you measure. If you are measuring other things, you are counting but not managing.
Measurement turns ugly, when it misdirects attention and leads to actions opposite of what you need or intend. ... What you reward is what you get, but if you are measuring the wrong things, what you get is not what you want.
Measurement is a tool, not a good or bad thing in and of itself. The right measurement applied with good judgment and perspective boosts performance for both individuals and the organizations they lead. The wrong measures lead to missed opportunities and counterproductive actions.
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