tag:blogger.com,1999:blog-860344269556202513.post8698915670497336432..comments2023-11-10T13:55:50.257-06:00Comments on Lessons in Lean: Managing What You Can't MeasureGregg Stockerhttp://www.blogger.com/profile/01727750230435526401noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-860344269556202513.post-31511192392510223542009-12-03T02:07:32.238-06:002009-12-03T02:07:32.238-06:00Gregg
As Einstein once said:
“Everything that ...Gregg <br /><br />As Einstein once said: <br /><br />“Everything that can be counted does not necessarily count. Everything that counts cannot necessarily be counted.” #Einstein #SM <br /><br />Surely the above applies to turnover but also to the challenge of measuring ROI for Social Media (e.g., blogging, tweets, etc.) <br /><br />For starters, how social media folks use ROI puzzles a finance person for sure. Second, we don't measure the ROI of your iPhone or air conditioning. Why, because it makes no sense. <br /><br />Instead, we have to focus on a few strategic KPIs and get the job done. Too many numbers detract from the main mission - making a profit to pay the rent and wages as I discuss here: <br /><br />http://commetrics.com/articles/metrics-3/ <br /><br />Of course, David is right to state that if we fail to manage the intangibles we might as well close shop. <br /><br />Thanks for sharing <br /><br />Respectfully <br /><br />urs <br />@ComMetricsUrs E. Gattiker - ComMetricshttp://my.commetrics.comnoreply@blogger.comtag:blogger.com,1999:blog-860344269556202513.post-34262550576006666822009-12-02T16:16:31.170-06:002009-12-02T16:16:31.170-06:00Excellent article. I always remember W. Edwards De...Excellent article. I always remember W. Edwards Deming's comments on "knowable and unknowable numbers". Too few managers understand the importance of unknowable numbers. Your explanation of the unknowables related to job turnover is a great example.Joe Jenneyhttp://www.mymanagersguide.comnoreply@blogger.comtag:blogger.com,1999:blog-860344269556202513.post-4878388619545851402009-12-02T04:17:34.481-06:002009-12-02T04:17:34.481-06:00Great post! And certainly an assumption that has t...Great post! And certainly an assumption that has taken on religious-fervor proportions in both leadership and management. Gregg you are right-on when you state that today too much time is being spent on number crunching, on micro-measurement, and a mindless obsession with "outputs" to the detriment (often total ignorance of) outcomes. Measurement is fine and certainly useful as a diagnostic tool. But obsession with the "tool" has in many cases become a substitute for critical thinking, for understanding the emotional context, and for creativity. Frederick Taylor gave us The Principles of Scientific Management in 1911 wherein he equated employees to inert, interchangeable cogs on a wheel ideally devoid of all emotional content. Sadly, many have not lost this preoccupation with "if you can't measure it you can't manage it" philosophy.Dr. Eli Sopowhttps://www.blogger.com/profile/15397205827200918216noreply@blogger.comtag:blogger.com,1999:blog-860344269556202513.post-11655774769351121932009-12-01T22:59:58.319-06:002009-12-01T22:59:58.319-06:00My point about the three measures Stuart mentioned...My point about the three measures Stuart mentioned (along with others) is that there is no way to know how much employee turnover really costs the company in terms of lost knowledge, lost experience, and quality problems, along with the hiring, training, and other costs associated with the reasons people leave the company (poor supervision, fear in the workplace, etc.). Senior leaders are responsible to reduce employee turnover (which is measurable), but understanding the benefits of doing so is not. The same could be said about the other two measures.<br /><br />W. Edwards Deming wrote, “the most important costs are unknown or unknowable,” but these are the things that leaders must manage. A lack of certain measures does not relieve leaders of their responsibilities to the organization.<br /><br />Thanks for the comments.Gregg Stockerhttps://www.blogger.com/profile/01727750230435526401noreply@blogger.comtag:blogger.com,1999:blog-860344269556202513.post-77310871405943297832009-12-01T17:20:43.025-06:002009-12-01T17:20:43.025-06:00I think that individuals should think about what m...I think that individuals should think about what metrics apply to them in their daily work as well. It doesn't have to be corporate-wide, but it can be useful in helping them assess their own work.Dan Markovitzhttps://www.blogger.com/profile/09600174699571102538noreply@blogger.comtag:blogger.com,1999:blog-860344269556202513.post-20722461788053753172009-12-01T17:05:44.130-06:002009-12-01T17:05:44.130-06:00While I believe that we all need to learn how to l...While I believe that we all need to learn how to let go of our obsession with numbers, I fear that as Stuart said in the previous comment that we will end up ignoring powerful measures that are available.<br /><br />Today over half of corporate value is considered by accountants to be intangible and is not counted on the financials. Rather than saying we cannot count this, we need to start doing just that. <br /><br />Intangibles like human capital, external relationships and captured knowledge do not appear out of thin air. They are the product of annual investment by corporations. And they contribute significantly to the bottom line.<br /><br />The 21st century manager needs to learn new approaches to measurement that include financial and non-financial metrics as well as assessment, where applicable. Here are some thoughts on measurement: http://www.i-capitaladvisors.com/index.php?s=%22intangibles+measurement+series%22Mary Adamshttp://www.i-capitaladvisors.comnoreply@blogger.comtag:blogger.com,1999:blog-860344269556202513.post-60103414613475060442009-12-01T12:09:03.800-06:002009-12-01T12:09:03.800-06:00You raise a good question and not everything is me...You raise a good question and not everything is measurable. However the last three you listed:<br />•Employee turnover<br />•Customer satisfaction<br />•Poor supplier relations<br /><br />are easily measurable and carry a lot of weight when determining a companies outlook.<br /><br />I think the point that you are missing is that almost anything is quantifiable to some degree. Teamwork for example can be measured by a change in output, increased in ideas, shorter implementation times etc. <br /><br />The critical element is to identify where an organizations pain is and map out a solution.<br /><br />Stuart Smith<br />CEO<br />The Entrepreneur's AdvisorThe Entrepreneur's Advisorhttps://www.blogger.com/profile/09338541106336334983noreply@blogger.comtag:blogger.com,1999:blog-860344269556202513.post-52708795045748740852009-12-01T12:08:33.554-06:002009-12-01T12:08:33.554-06:00You raise a good question and not everything is me...You raise a good question and not everything is measurable. However the last three you listed:<br />•Employee turnover<br />•Customer satisfaction<br />•Poor supplier relations<br /><br />are easily measurable and carry a lot of weight when determining a companies outlook.<br /><br />I think the point that you are missing is that almost anything is quantifiable to some degree. Teamwork for example can be measured by a change in output, increased in ideas, shorter implementation times etc. <br /><br />The critical element is to identify where an organizations pain is and map out a solution.<br /><br />Stuart Smith<br />CEO<br />The Entrepreneur's AdvisorThe Entrepreneur's Advisorhttps://www.blogger.com/profile/09338541106336334983noreply@blogger.com