Thoughts on ways to improve the management of professional services firms

Sunday, March 08, 2009

Common problems with performance indicators - complexity and control

A little while since I posted. Life has just been too busy!

During the week I had cause to look at some performance indicators. Several pages of them in table form. My heart sank because they really breached two key rules.

The first rule is simplicity. The more things you try to measure, the more complicated the indicators become, the less effective they are likely to be.

The second rule is control. If people are to be assessed using indicators, then there needs to be a link between the indicators and those elements of performance that people can control on an individual basis. With these indicators, no individual or even individual teams could guarantee results.

Sigh. I wonder how we can get the message across in an effective way. Certainly I am not very effective.

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