The adage “if we do not measure it, it does not matter” has become a mantra in business. Yet, for most organizations and individuals, it would suggest that most of their efforts are meaningless, as they remain unmeasured.
We rely on outdated, one-sided financial statements, often with absolute certainty. But when it comes to our greatest asset – our people – we have little data-backed information to evaluate their performance. Instead, we revert to anecdotal evidence and subjective measures on a Likert scale.
As Peter Drucker famously said, “What gets measured gets managed.” But are we measuring the right things? A study by the Harvard Business Review found that only 23% of companies clearly understand which metrics drive their business.
It’s not just about measuring outputs but outcomes. Completing a task more often than expected is not a success if it must be redone. The true measure of success lies in the time taken and the cost incurred.
Creating performance measures that matter is crucial for growth and resource optimization, as well as ensuring that individuals focus on the work that truly matters. A study by Deloitte found that organizations with a strong culture of measurement are 44% more likely to achieve above-average growth.
But before you rush to compile a set of metrics, consider this: not everything measured matters. Albert Einstein once said, “Not everything that can be counted counts, and not everything that counts can be counted.”
So, what are you measuring, tracking, and managing regularly? And more importantly, does it truly matter?
