LIFE SCIENCE SUPPLY CHAIN SOLUTIONS BY STEVE CLARKE
In last week’s article, I shared an excerpt from my book “Mine the Gaps”, in which I discuss how too much linkage between metrics and evaluation will always cause smart people to do dumb things. In this article, I include an excerpt that speaks to another measurement dysfunction, which is management obsession with technology associated with metrics, such as dashboards. In fact, it has been estimated that, 70 percent of all scorecard and dashboard projects have failed to provide any positive business results for the organizations adopting them. Here is the excerpt from my book: “As former Marshall Industries CEO Robert Rodin said, “You can’t expect technology to fix the flaws in your system. If you automate a broken process, you get an automated broken process.” Many organizations have impressive scorecards, dashboards, and mind-boggling analytics that provide them with little or no insight. The central problem is that there is a zeal to adopt an instant, off-the-shelf scorecard, which leaves organizations devoid of any real value, especially after the initial glow has worn off, and the consultants are long gone” “Furthermore, the greater complexity, the greater the possibility of failure. My advice to you is to start with a simpler system of metrics. If you acquire a modest version of what the system might someday evolve into, you will have a better chance of mastering it in the early stages, then evolving into something more complex as you grow.” “Similarly, measure your data accuracy before embarking upon an expensive technology project. It has been estimated that data quality problems cost U.S. businesses about $1.5 trillion per year—that’s a hefty price tag. Much more emphasis needs to be placed on data quality (data integrity, data accuracy, data ownership, and data accessibility).” “In the absence of good measurement, it is human nature to pay attention to the unusual or the annoying. In other words, the squeaky wheel gets the grease, even when another one needs it more urgently. Measurement instigates informed action to provide the opportunity for people to engage in the right behavior at the right time. You’ve probably heard the saying, you can’t manage what you don’t measure, as well as what gets rewarded gets done. Good metrics in your company helps cut through the layers of vagueness and get right to the point. Good leaders understand that measurement is important in influencing outcomes. Studies have found that only about 50% of people are satisfied with their current measurement systems and only 15% are very satisfied. In other words, there is lots of room for improvement in the metrics department.” In the past 2 articles I have been quite critical of general measurement practices. In the next article, we’ll review “what good looks like”, and why it is so important to get it right.
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