Measurement Madness : Recognizing and Avoiding the Pitfalls of Performance Measurement

Author

Additional Author(s)

• Micheli, Pietro
• Pavlov, Andrey
• Gray, Dina

Publisher

Chichester, West Sussex: John Wiley & Sons Ltd, 2015

Language

English

ISBN

9781119960522

Series

Subject(s)

• PERFORMANCE--MANAGEMENT
• PERFORMANCE--MEASUREMENT

Notes

. .

Abstract

A clearer, more accurate performance management strategy
Over the past two decades, performance measurement has profoundly changed societies, organizations and the way we live and work. We can now access incredible quantities of data, display, review and report complex information in real time, and monitor employees and processes in detail. But have all these investments in collecting, analysing and reporting data helped companies, governments and people perform better?
Measurement Madness is an engaging read, full of anecdotes so peculiar you'll hardly believe them. Each one highlights a performance measurement initiative that went wrong, explains why and – most importantly – shows you how to avoid making the same mistake yourself.
The dangers of poorly designed performance measurement are numerous, and even the best how-to guides don't explain how to avoid them. Measurement Madness fills in the gap, showing how to ensure you’re measuring the right things, rewarding the behaviours that deserve rewarding, and interpreting results in a way that will improve things rather than complicate them. This book will help you to recognize, correct and even avoid common performance measurement problems, including:
• Measuring for the sake of measuring
• Assuming that measurement is an instant fix for performance issues
• Comparing sets of data that have nothing in common and hoping to learn something
• Using targets and rewards to promote certain behaviours, and achieving exactly the opposite ones.
Reading Measurement Madness will enable you to design a simple, effective performance measurement system, which will have the intended result of creating value in your organization.

Physical Dimension

Number of Page(s)

1 online resource (xiii, 223 p.)

Dimension

-

Other Desc.

-

Summary / Review / Table of Content

From the Authors xi
PART I INTRODUCTION 1
1 The Road to Insanity 3
2 Performance and Measurement 13
What is performance measurement? 14
What is performance? 15
What is measurement? 17
Getting the number or changing the behaviour? 20
PART II PERFORMANCE MEASUREMENT 21
3 Measurement for Measurement’s Sake 23
Making things measurable 25
Measures and more measures 27
Competitive measuring 27
Sticky measures 27
Conflicting measures 28
Losing the link to performance 29
Excessive reliance on measures 30
Fixating on measures 31
Getting desensitized to numbers 33
Getting lost in performance data 34
Paying the price 35
Preventing learning and change 37
Learning points 37
Deciding what to measure 38
Designing a robust indicator 40
Managing with measures 41
And finally… 41
4 All I Need is the Right Measure! 43
How difficult can this be? 46
What’s in a name? 46
Knowing the purpose 47
Poor relations 48
It’s in the formula 49
Frequency 50
Where does the data come from? 51
What will you do with the results? 53
How strong are your indicators? 54
Is the indicator measuring
what it is meant to measure? 55
Is the indicator only measuring
what it is meant to measure? 56
Is the indicator definitely the right indicator? 57
Is the indicator consistent regardless of
who measures and when? 58
Can the data be readily communicated
and easily understood? 59
Is any ambiguity possible in the
interpretation of the results? 60
Can and will the data be acted upon? 61
Can the data be analyzed soon enough
for action to be taken? 62
Is the cost of collecting and analyzing data justified? 63
Will the measure encourage any undesirable behaviours? 64
Learning points 66
It’s not just a KPI 66
Pass or fail 67
And finally… 67
5 Comparing Performance 69
Apples and pears 73
Differences in data collection 73
Different datasets 75
Different methodologies 76
Interpretation and presentation 78
Timeliness 80
Special variation 81
Choice and relevance 82
Using data unintended for comparative purposes 83
Yes, but… 84
Moving up the rankings 85
Unintended consequences 89
Learning points 92
Which data to collect? 93
Collection mechanisms 93
Consistency 94
Handling ambiguity 94
And finally… 95
PART III PERFORMANCE MANAGEMENT 97
6 Target Turmoil 99
What are performance targets? 102
When targets go bad 104
Are targets so bad? 106
The main pitfalls 107
When targets do good 114
Clarity and commitment 116
Unexpected benefits 118
Learning points 119
Types of targets 121
Setting targets 122
Feedback 123
Targets and incentives 124
In summary 124
And finally… 126
7 Gaming and Cheating 127
Gaming: what is it? 129
Gaming and cheating 133
What drives gaming and cheating? 137
The pressure to perform 139
Targets – the wrong kind and in the wrong way 141
The climate of competitiveness 142
Types of gaming 144
The number and predictability of gaming behaviours 145
Learning points 149
Relieving the pressure 150
Setting the right kind of target 150
Foreseeing the future 151
Improving data management systems 151
Changing the culture 152
And finally... 154
8 Hoping for A Whilst Rewarding B 157
Common management reward follies 160
Hoping for teamwork whilst rewarding individual effort 160
Hoping for the long term whilst rewarding
short-term gain 162
Hoping for truth whilst rewarding lies 163
Hoping for contribution whilst rewarding outcomes 166
Hoping for budget control whilst rewarding overspend 167
Learning points 169
Targets, rewards and measures 169
Reward people later 171
Avoid negative spillover 171
Systems thinking 172
And finally… 173
9 Failing Rewards and Rewarding Failure 175
Top rewards for top performers 178
Rewarding failure 179
Failing rewards 180
Measurement, rewards and motivation 182
When financial rewards backfire 185
What motivates us? 188
Learning points 192
Motivation and long-term goals 192
Different strokes for different folks 193
The right measures 194
The time to reward 195
Team vs. individual rewards 195
And finally… 196
PART IV CONCLUSIONS 197
10 Will Measurement Madness Ever Be Cured? 199
And finally… 203
References 205
Index 217

Exemplar(s)

#	Accession No.	Call Number	Location	Status
1.	00470/19	658.4013 Gra M	Online !	Available