This Focused Performance Weblog is a "business management blog" containing links and commentary related primarily to organizational effectiveness with a "Theory of Constraints" perspective. TOC is noted for its applications in Project Management and Multi-Project Management (Critical Chain) and Operations Management (Drum-Buffer-Rope), as well as in Marketing, Strategic Planning and Change Management (TOC Thinking Processes). If you are on an archive page, current postings are found here.
"There's an old saying in business: What gets measured is what gets done. What's happening today is the flip side of that. Measurement has become a tyranny that makes sure that nothing gets done.
"I've developed what I like to call the Otis Redding Theory of Measurement, which is named for his song '(Sittin' on) The Dock of the Bay.' In that song, Redding sings, 'I can't do what 10 people tell me to do, so I guess I'll remain the same.' That line sounds as if it could be about companies' misconceptions about measurement.
"Companies have managed to convince themselves that, since what gets measured is what gets done, the more they measure, the more stuff will get done. Last summer, I met a woman who works for a large oil company, and she told me that the company has 105 measures for which she is responsible. So I asked her, 'How many of those 105 measures do you pay attention to?' Her answer? 'None.' Because in the end, she's measuring so many things that she doesn't pay attention to any of them -- 105 equals zero."
Too many measures are not only distracting, but are also the root of debilitating dilemmas. Which measure is more important? How do I make this measure look good without making that one look bad? Measures are either operationally useful, providing guidance on the best use of your time and attention today, or are mere indicators of past performance, and even worse, past performance of local components of the organizational system. There are very few useful measures that fall into the latter category, because only the constraining component relates directly to organizational performance.
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