What gets Measured, gets Managed

Have you ever come across the expression "what gets measured, gets managed"? It's attributed to the late Peter Drucker, legendary management consultant and business thinker. He is the person who coined the phrase "knowledge worker" - somewhat unbelievably, all the way back in 1959.

WGMGM seems to exemplify a way of thinking that has all but taken over in modern business thinking, especially in the marketing sector. We focus, often to the exclusion of all else on metrics - ie. numbers, rather than words.

There are several problems with this. The first one is that Drucker never actually said it. It's like one of those Mark Twain quotes that someone put in a greetings card one time and the next thing you know it's become the accepted wisdom.

But much more importantly is the concept itself. There's a clear implication in WGMGM that only what gets measured gets managed. In other words, the only valuable things taking place in a business are the things being measured, as these are the only things that can be 'managed'. This can lead to perverse outcomes such as - for instance hospitals being penalised for treating patients that have been waiting for treatment longer than 18 weeks. This is a clear example of a badly-designed metric / incentive. And we're surrounded by these aren't we - who hasn't quit a media subscription knowing that a 50% offer to come back will arrive shortly in your inbox (rinse and repeat).

But I think there's a deeper problem too which is even more important. Quite a lot of what is important simply cannot be measured with a metric at all. Here's what Drucker himself said to the CEO of a TV company in 1990

“Your first role . . . is the personal one...It is the relationship with people, the development of mutual confidence, the identification of people, the creation of a community. This is something only you can do.”  Drucker went on: “It cannot be measured or easily defined. But it is not only a key function. It is one only you can perform.”

Isn't that a delightful expression of the importance of the magic of leadership? When it comes to people, what makes us effective cannot be captured by a simple metric. Not enthusiasm. Or pride, or commitment to go above and beyond. We try and track this through feedback and appraisals, but these are blunt tools. This is why quality conversations with colleagues are so crucially important. When we have open, honest and expansive conversations with people, our brains release oxytocin, the social engagement hormone, and we are chemically rewarded for engagement and cooperation for a common purpose.

So in summary: by all means, let's be good managers, and use accurate measurement to understand exactly how the business is performing. We should never be in the business of hiding from cold, hard numbers. But never make the mistake, as a senior leader in the company, that this gives the entire picture, or sometimes even the most important part. When it comes to people, the numbers don't even tell half the story. What gets measured gets managed. But what is done with passion, pride and commitment attracts passionate, proud and committed people. And that is essential for our continued success. As leaders, we need to remember that