Metrics: How to Improve Key Business Results (Martin Klubeck)

In Metrics: How to Improve Key Business Results, Martin Klubeck talks about . . . using metrics to improve things.  He discusses basics, how to develop metrics, and what metrics aren't, among other things.  A synopsis of the important points is below, followed by a brief review.

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The Basics

"A metric tells a complete story using [qualitative and quantitative] data, measures, information, and other metrics to answer a root question."  A root question is, essentially, the real driving need.  It's "the map we use to help determine our direction.  It identifies the goal of our journey."  As such, getting the root question- this underlying need- correct is fundamental to the metrics process.  To get the root question right, one can try the "Five Whys" technique- ask 'why' five times as you're discussing the situation with the customer to get to the underlying need.  Clarity here (and always) is paramount- use common terms and define even basic expressions to ensure mutual understanding.

Once the root question is known, one needs to create a metric development plan, which "captures all of the components of the metric- data, measures, information, pictures, and of course, the root question.  The plan also documents how these components are collected, analyzed, and reported" and includes things like schedules/timetables for implementation.  Documentation is important, because it shows the process, which must be transparent and repeatable.  "Without repeatability, you don't really have a process [and you can't improve]."  While planning, keep in mind the principle of triangulation: use multiple measures, collection techniques, analysis methods, etc. for processing information.

In the end, the metric development plan should document the why (purpose statement), what (metric), when (schedule), who (customers), and how (analysis, how it will and how it won't be used).

How data will and won't be used is important.  You must share the purpose when you request data- otherwise fear takes hold.  "To create a useful metric, you have to know [and share], in advance of collecting the data, how the results (answers) will [and won't] be used."

Finally, remember the real goal- meeting customer expectations.  To meet them, one must first know them- "without expectations, we don't know if the story is a good one or bad one."  Interestingly, meeting expectations is better (in the author's eyes) than exceeding (or falling below) expectations- but in either case, "anomalies to the expectations can provide useful information."


What Metrics Aren't

To me, the most valuable part of the book was chapter 4, which discusses what metrics aren't.  They're easily abused, and it's important to remember the following points (all quotes or paraphrases from the book):

- Metrics are nothing more than indicators.
- Metrics aren't about providing truth, they're about providing insight.
- The only proper initial response to metrics is to investigate.
- Metrics may have multiple interpretations.  They require interpretation to be used properly.
- Metrics should inform, not drive, decisions.

In the end, when "[u]sed properly, metrics should lead our conversations, help us to focus, and draw our attention in the right direction.  Metrics don't provide the answers; they help us ask the right questions and take the right actions."

What happens when we abuse metrics?

When we give metrics some undeserved lofty status (as truth instead of indicators) we encourage our organization to "Chase the data" rather than work toward the underlying root question the metrics were designed to answer.  We send a totally clear and equally wrong message to our staff the the metrics are what matter.  We end up trying to influence behavior with numbers, percentages, charts, and graphs.

So Where to Begin?

To help structure and focus efforts, Klubeck presents what he calls an 'Answer Key,' a "shortcut tool for you to implement metrics."  This technique is made up of four tiers that branch out (as you move to the right) and each focus on a particular area; the method helps you determine where you need to go with your metrics.


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Review

This was my third metrics book in the span of a few weeks, and I'm starting to sour on the topic (it's not the most captivating reading material, regardless of author ability).  Still, this work made some good points- especially about the dangers of metrics.  It is good to hear similar things coming from multiple places- principles of clarity and core needs (here, 'root question') seem common to all metrics books, and "in many counselors there is wisdom."  The author's 'Answer Key' technique sounded interesting, but was frankly along the lines of other, more popular, methods (a few of which are mentioned in another book, reviewed here).  On the downside, as a whole this book wasn't overly clear, meandered, repeated itself, and covered tangential topics without explanation.  I'm glad I read chapter 4, but could have skipped the rest.

Rating: B-