I've in the middle of an article on one of the former Berkshire Hathaway's top managers, David Sokol. Unlike the "pedigree" if you will of Harvard, or say a Stanford, this individual went to University of Nebraska, yet rose to become the chairman of MidAmerican. This might not be unusualin itself but his motivation, drive and management principles got my attention. As I usually do, I went to amazon.com and tried to find a book he had written, "Pleased but not satisfied" so I could, as per my personal quest, capture a glimpse on what the secret of his business success is.
Ravi Nagarajan in his review of the book outlined something key:
"Metrics are critical because, in most organizations, what is measured is what gets the attention of managers and employees. By setting key performance indicators at the corporate level and having each operating unit do the same, managers can clearly communicate what is important and what is not. In my experience, great employees will welcome measurement and be motivated by scorecards while poor employees will object. Mr. Sokol's recommendation to always measure against a plan and to correct for changing assumptions and events can improve the results of any organization."
I absolutely think measurement is absolutely essential in determining success. Let me give a simplistic example. In my youth, I went to a British school where the report card would grade on effort and attainment. The attainment was determined on a few exams with little measurement and feedback. To me it was subjective. Sometimes, I felt like I was doing well when I wasn't and vice versa. When I switched to the American school, my grades were primarily determined by a series of tests,almost once a week, all objective, measurable and no "fuzzy logic". Attainment, not effort, was the important factor. If I scored 90% and above, I was quite sure what my end of the year grade would be. I found this very comforting not only because it was measurable but also because it offered instant feedback on where I stood on the attainment scale and how far I was from achieving my end of semester grade.
Now, to me, this is absolutely essential in the workplace. I work for a team where this is all subjective, effort and attainment, purely based on perception. Just falls into a grey area. How far would you know to kick a ball unless you had a goalpost or a yardstick to measure it by? Metrics should be used in every corner of the organization:
*Instant feedback
*Clear indication of attainment
*Supports goal setting
