Tag Archives: Performance management

Against metrics: how measuring performance by numbers backfires

BOOK REVIEW

The Tyranny of Metrics, Author: Jerry Z Muller.

By Jerry Z Muller – More and more companies, government agencies, educational institutions and philanthropic organisations are today in the grip of a new phenomenon. I’ve termed it ‘metric fixation’.

The key components of metric fixation are the belief that it is possible – and desirable – to replace professional judgment (acquired through personal experience and talent) with numerical indicators of comparative performance based upon standardized data (metrics); and that the best way to motivate people within these organizations is by attaching rewards and penalties to their measured performance.

The rewards can be monetary, in the form of pay for performance, say, or reputational, in the form of college rankings, hospital ratings, surgical report cards and so on. But the most dramatic negative effect of metric fixation is its propensity to incentivize gaming: that is, encouraging professionals to maximize the metrics in ways that are at odds with the larger purpose of the organization. more>

Google’s Lessons for Workforce Management

BOOK REVIEW

Work Rules! Author: Laszlo Bock.
Aligning Pay and Results, Author: Howard Risher.

By Howard Risher – “You either believe people are fundamentally good or you don’t.

“If you do believe they’re good, then as an entrepreneur, a team member, a team leader, a manager, or a CEO—or a government leader—you should act in a way consistent with your beliefs. If people are good, then they should be free. Too many organizations and managers operate as if, absent some enlightened diktat, people are too benighted to make sound decisions and innovate.”

Google’s “work rules” are stated throughout the chapters. These rules are not unique to Google. Descriptions of the best companies to work for reflect similar philosophies. more> http://tinyurl.com/ozrqx2d

Related>