Who Decides Metrics? LO8416

indra bastian (adrowe@essex.ac.uk)
Wed, 10 Jul 1996 10:45:07 BST

Replying to LO8361 --

On 07 Jul 96 20:22:18 EDT Rol Fessenden wrote:

> Andy asks:
> > Just two small queries:
> >
> > a) Who decides the nature of these metrics, and which metrics are
> >the most important ? (i.e. it may not be possible to reach all targets at
> >all times)
> > b) If there are major changes in the organization's environment in
> >the future, who decides whether to shift the 'goalposts' and to where?
>
> === End quote ===
>
> You have to be able to assess all the stakeholders' performance and
> productivity. Customers come first without question. However, suppliers,
> employees, and stockholders all add value to the process.
(good stuff deleted here)
>
> Typically senior management approves a change to the goal posts. They
> receive recommendations from people closer to the front lines. They are
> likely to act on the recommendations if the people have proven themselves
> reliable in the past, and if the people have justified the need to change
> the standards.

The answers that Rol and Ginger are very enlightening, with much to
commend them.

BUT, firstly, the idea that customers play an important role in defining
the metrics is tempered by the ideas of generative learning (re: the
GArvin article of 1992, I think, and work by Senge himself), which
suggests that customers DON'T always know what they want, organizations
have to develop new ideas 'beyond the frontier' to maintain their
position, rather than 'doing the same, but better'.

Secondly, although, in an ideal world, the senior management should take
their cue from those 'on the ground', this is perhaps seen as beig against
the ideas of 'strategic decision-making', that Senge et al find such a
disagreeable 'mindset'.

Andrew Rowe (adrowe@essex.ac.uk)

[Host's Note: In case readers are confused by the sig, the msg was signed
"Andrew" by the author, and the msg header says it's from "Indra." I
assume Andy is using Indra's email account. ...Rick]

-- 

indra bastian <adrowe@essex.ac.uk>

Learning-org -- An Internet Dialog on Learning Organizations For info: <rkarash@karash.com> -or- <http://world.std.com/~lo/>