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So how does a company manage anything if they can't use measurement targets?
Like software engineering. How do you improve productivity or code quality if setting a target value for a measurement doesn't work?
You don’t make your measures your targets.
Example:
“Our customers hate us. We will make our employees get a 10 on their surveys for each customer or we’ll punish them” makes the measure a target.
“Our customers hate us, so we’re going to change our shitty policies to be more consumer friendly and see how our customers respond” keeps the measure as a measure.
So the difference is who decides what changes to make when interacting with the subject of the measure: workers vs management. Making the measure a target is basically a shitty management technique that abdicates responsibility.
Ok I'm going to answer my own question because I'm too curious to wait lol
[Source]
It's pretty well established academically that basically the only way KPIs can actually work toward their intended purpose is if they are changed often and determined by the people doing the work that is ultimately measured. Ongoing measurements should only ever be used as indicators - hence the term *key performance indicators_ - and should never be used as targets. What that means in practice is that you should generally ignore all the individual metrics, and look across all of them instead to see if you can spot trends and anomalies, then investigate these qualitatively with the workers who ultimately produce those data to figure out what is happening and if any intervention is necessary.
The problem is that the higher up you get in the hierarchy, the less of that kind of work there is to do and you end up chasing the people below you for nice numbers to plot into your presentations to make it look like there's a point to your job's existence.
Thanks for uncovering this report, very insightful and lots of great examples!