Chapter 1: The Significance of Measurement

In the 1950s, renowned business author Peter Drucker famously stated, "What gets measured gets managed." This phrase has long been a guiding principle in management practices.

This assertion underscores the idea that measurement can influence outcomes, even if the metrics being tracked are not particularly meaningful. Simply measuring something just because it is feasible does not necessarily imply it should be measured.

Some time ago, I came across an article discussing the nuances of measurement and the importance of identifying the right metrics to track. It provided a compelling illustration using the example of a buffet restaurant. The restaurant owners aimed to ensure that every guest enjoyed a satisfying meal and had a delightful experience, encouraging them to return.

To achieve this, they appointed a friendly young woman to welcome guests at the entrance, assisting them with the buffet process and addressing any concerns. After a few days, the manager decided that it was essential to keep utensils and napkins readily available for guests and assigned this task to the greeter.

While this was a practical idea, as it was a straightforward and quantifiable responsibility, the manager further expanded the greeter's duties to include managing various condiments on the buffet line—such as butter, salt, and pepper. This too was a measurable task.

Before long, the manager began to closely monitor the buffet area, ensuring that the greeter was fulfilling these additional responsibilities. The greeter soon realized that her job performance hinged on maintaining the organization of the buffet. However, this shift in focus took away from her primary role of greeting new patrons.

As a result, her ability to provide attention and service to incoming guests diminished, leading to a noticeable drop in business. This scenario illustrates a classic case of having good intentions yet measuring the wrong aspects of performance.

When deciding what to measure, it's vital to be cautious. While collecting data may be straightforward, it doesn't guarantee achieving the desired outcomes.

How do you measure success? | Q+A

This video explores various perspectives on defining and measuring success, emphasizing the importance of aligning metrics with genuine goals.

Chapter 2: The Dangers of Misguided Metrics

How To Measure Success In Business: The Most Important Metric

In this video, viewers learn about the key performance indicators that truly matter in business, focusing on metrics that lead to sustainable success.

By being mindful of what we choose to measure, we can better understand our businesses and enhance the customer experience, ultimately driving success.