 |
| Measure performance |
Data, metrics, measures, assessments, evaluations, scorecards, progress reports, report cards… Many of us have been faced with a host of measurement opportunities. Seems like some of the performance measurements are moving targets that we seldom hit. Some measurement processes come and go like a fog. I recall hearing this maxim years ago: “What gets measured gets done.” It has been attributed to Peter Drucker, Tom Peters, Edwards Deming, Lord Kelvin and others.
We can learn some lessons from renowned stalwarts.
Cisco systems once the invincible momentum stock adored by Wall Street, came crashing down just as we were headed towards the 21st century. Problems started when Cisco announced a $2.2 billion inventory write-off – Wall Street severely punished the stock as a result. With all its experience, why didn't Cisco see the problems coming? Cisco made a common mistake: it projected the past into the future. Past demand had been vigorous, but the customers were requiring less and less of the firm’s products. And financing was cheap-it was no problem for a company like Cisco to find capital to finance ongoing operations even though the horizon looked invisible and unclear because of wrong measurements and forecasting. Cisco failed to see the slowdown in customer demand. Cisco missed this important point and inaccurately forecast-ed the new demand. [J Weber, “Management Lessons from the Bust” Business Week, Aug’2001]
We need to measure all types of results, for that measurement have to be correct, focused and realistic, so that we can take appropriate action while doing “Walking the talk”, which results into trust for our future steps.
We can learn some lessons from renowned stalwarts.
Cisco systems once the invincible momentum stock adored by Wall Street, came crashing down just as we were headed towards the 21st century. Problems started when Cisco announced a $2.2 billion inventory write-off – Wall Street severely punished the stock as a result. With all its experience, why didn't Cisco see the problems coming? Cisco made a common mistake: it projected the past into the future. Past demand had been vigorous, but the customers were requiring less and less of the firm’s products. And financing was cheap-it was no problem for a company like Cisco to find capital to finance ongoing operations even though the horizon looked invisible and unclear because of wrong measurements and forecasting. Cisco failed to see the slowdown in customer demand. Cisco missed this important point and inaccurately forecast-ed the new demand. [J Weber, “Management Lessons from the Bust” Business Week, Aug’2001]
We need to measure all types of results, for that measurement have to be correct, focused and realistic, so that we can take appropriate action while doing “Walking the talk”, which results into trust for our future steps.
_________________________________________ ***** __________________________________
No comments:
Post a Comment