Monday, September 28, 2009

Measurement Stifles Organizational Growth

"Tell me how you measure me and I will tell you how I will behave." That's how people go to work when they know they are being measured. Think what happens in a meeting once you bring a video camera into the room. What was once an honest discussion and exchange of ideas becomes a watered-down, preening for the camera. That is exactly what measurement does to an organization. Measurement stifles creativity.

Measurement forces people to only do what they are being measured on. After all, if you're not being measured to be innovative (and that can not be measured because in order for measurement to occur there needs to be a benchmark) then employee's attitudes are, "don't waste your time with stuff you won't get points for."

Organizations have for years done exactly the opposite of what science knows. Dan Pink points out that research clearly shows that rewards and incentives do not work and, in fact, retard performance. The bigger the incentive, the worse the performance. Yet, business still insists on hanging onto the attitude that offering rewards and incentives works regardless of what the science says. In the same way, an argument could be made that measurement stifles creativity and forces people to do only what is in their box. In the same way, the argument could be made that those who are at the top of a heavily-measured organization scored the best scores inside the box.

How in the world can you encourage creativity by being overly-measured? Measurement requires a benchmark before it can be considered a measure. If there is no benchmark (because you've never done it before) then any time, creativity or activity spent outside of the scope of measurement would seem like a complete waste of time. If people appear to be wasting time, they will not score well on metrics. Conceptualizing ideas, daydreaming, thinking, studying and watching can not be measured as productive. But that's where innovation comes from. Innovation comes from an Instigational® Attitude.

It is those of Instigational® Attitude who are the innovators, pushers of boundaries and agents of change within an organization. They don't stand on tradition and actually abhor it. They go in search of new ways to operate more efficiently. But innovation is where an organization gets to jump out in front of the mediocre pack and do something different, daring and divine. Measurement retards that same innovation.

If you're working on things outside of the measurement scope then you appear to be wasting time. People don't want to be seen as time-wasters working on stuff that isn't being measured. Therefore, the very act of measurement retards organizational growth and innovation.

Organizations are painting themselves into their own corners by hanging onto the attitude that measurement is necessary. It's how the consultants have had too much influence over organizations and their employees. It seems fairly simple to me: measurement or innovation but you can't have both. Develop your Instigational® Attitude and go find new ways, better ways to serve your organization and your customers. Make your measurement off the charts.
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