The Startup Community Way

CHAPTER ELEVENTHE MEASUREMENT TRAP

Startup Community Way Principle

Startup communities must avoid the trap of letting demand for measurement drive flawed strategies. The most tangible and therefore easiest factors to measure in a startup community also have the least amount of impact on its performance over the long term. Given limited resources and understanding, many organizations, particularly feeders, let the desire to measure things steer strategies in the wrong direction.

Legendary management thinker Peter Drucker is credited with coining the phrase “If you can't measure it, you can't manage it.” Today's contemporary version, “What gets measured gets managed” is one of the most commonly referenced quotes in the business world. But there are two problems. First, Drucker never said it. ¹ Second, and more important, it's conceptually misaligned with his more nuanced views on effective management.

While Drucker was a strong advocate for “the measurement of results,” he also knew a more important task for business leaders is to establish something less tangible.

It is the relationship with people, the development of mutual confidence, the identification of people, the creation of a community…

It cannot be measured or easily defined. But it is not only a key function. It is one only you can perform. ²

While relationships can be measured to a degree, not everything that can be measured matters and not everything that matters can be measured. This is a vital lesson ...