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Challenging conventional wisdom related to defining business metrics: a behavioral approach

Challenging conventional wisdom related to defining business metrics: a behavioral approach Purpose – Measurement drives behavior. Unfortunately, most performance measurement initiatives overlook this fact. Implementations are performed top‐down with strategy as the starting‐point. There needs to be a better understanding of the cultural context of the metrics (What is driving the behaviors?) and a better understanding of what metrics are to define (How do we drive the right behaviors through measurement?). The purpose of this paper is to explore the notion of a context‐based approach to performance metrics – by examining an organization's negative values – and the notion of a content‐based approach – by introducing the concept of business interface metrics. Design/methodology/approach – The article analyses business metrics. Findings – The paper demonstrates the need to use interface metrics in order to better manager processes and deliver organizational values. Originality/value – To get new insights, sometimes conventional wisdom needs to be challenged. Following best practices around metrics can prevent companies from reflecting on the effect of the metrics they are trying to put in place. By coming up with a different approach (business interface metrics and negative values), interesting insights can be gained. Moreover, taking a fresh approach ensures that new thinking takes place and that there are fewer conformist paths to fall back on. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Measuring Business Excellence Emerald Publishing

Challenging conventional wisdom related to defining business metrics: a behavioral approach

Measuring Business Excellence , Volume 11 (1): 7 – Mar 27, 2007

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Publisher
Emerald Publishing
Copyright
Copyright © 2007 Emerald Group Publishing Limited. All rights reserved.
ISSN
1368-3047
DOI
10.1108/13683040710740899
Publisher site
See Article on Publisher Site

Abstract

Purpose – Measurement drives behavior. Unfortunately, most performance measurement initiatives overlook this fact. Implementations are performed top‐down with strategy as the starting‐point. There needs to be a better understanding of the cultural context of the metrics (What is driving the behaviors?) and a better understanding of what metrics are to define (How do we drive the right behaviors through measurement?). The purpose of this paper is to explore the notion of a context‐based approach to performance metrics – by examining an organization's negative values – and the notion of a content‐based approach – by introducing the concept of business interface metrics. Design/methodology/approach – The article analyses business metrics. Findings – The paper demonstrates the need to use interface metrics in order to better manager processes and deliver organizational values. Originality/value – To get new insights, sometimes conventional wisdom needs to be challenged. Following best practices around metrics can prevent companies from reflecting on the effect of the metrics they are trying to put in place. By coming up with a different approach (business interface metrics and negative values), interesting insights can be gained. Moreover, taking a fresh approach ensures that new thinking takes place and that there are fewer conformist paths to fall back on.

Journal

Measuring Business ExcellenceEmerald Publishing

Published: Mar 27, 2007

Keywords: Performance measurement (quality); Behaviour

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