Measurement Madness: Recognizing and Avoiding the Pitfalls of Performance Measurement

Chapter 10Will Measurement Madness Ever be Cured?

Measuring for the sake of measuring, comparing the incomparable and hoping for improvement whilst rewarding failure are some of the key measurement pitfalls exposed in this book. We have discussed the multiplicity of reasons that drive organizations to measure, delved into the complexities of performance measurement and demonstrated that, although well intentioned, management efforts often result in measurement madness. Despite the antidotes we prescribed at the end of each chapter to help prevent or at least alleviate the dysfunctional consequences of measurement efforts, the question remains: can such madness ever be cured?

All organizations, however small, are complex organisms made up of complex human beings with their own individual habits, preferences, skills, knowledge, emotions and aspirations. Measuring and managing performance is a profoundly social activity, which is tightly linked to the behaviours of individuals and groups. In our work with organizations, we are often faced with the situation where the search for “the right measures” inevitably leads to questions about the overall direction of the organization, its strategy, the organizational culture and the behaviours these three elements engender. We hope that the stories we have recounted demonstrate that performance measurement is not a “neutral” activity, but that it is intimately related to how people behave and act. Indeed, if we were to summarize the message ...