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Is measuring the wrong things a risk?

August 23, 2022

Frequently when I am invited into an organisation it is because something has gone somewhat off course.  Every time this happens, we look at the measures being deployed, and whether there is something in those which is driving behaviours.  Measures drive behaviour, it is why they are there, but they have to be sending people in the right direction for the right reason.  In a risk sensitive organisation, it is absolutely crucial that the alignment of all the measures are on course, asking for the right action for the right reason.

A myth which I hear often is that “it is all about making money”.  Any professional with an eye on risk knows this is not the case.  It is far more nuanced than this, as doing the wrong thing, even for the right reason can slice enough off the bottom line to hurt.  The bottom line is not just about money either, it is the organisation’s reputation, its human capital, its ability to win new work and any number of other factors, which sometimes get put in the “too tricky to measure” category and often left out when target setting. 

What I know from twenty years of implementing our Halo model in organisations of all sizes is that people always come to work to do a good job, want to do the right thing and feel a sense of purpose in their work.  Aligning behind a set of values which mean something and a goal around making a positive difference allows this, measuring this keeps everyone on track, and these things are easier to measure than people think.

Not doing this, and lots of organisations don’t, causes issues, and all of these deliver an element of risk.  For example, a relentless focus on turnover might deliver a higher figure, but what will it cost to do this?  Focus on creating value and trust in organisations generally creates positive side effects.  However, and this is important, focusing on something like staff satisfaction without a strong enough weighting on end users and efficiency is arguably what has caused the, often, poor outcomes we have seen in some sectors recently.  

To sum up, it’s about clear, purposeful alignment.  It is straightforward, important and all organisations need to do it, because not doing it is risky.

Alison Bond is a marketer, published writer and director of The Halo Works Limited. A full member of the Market Research Society, she has been the main architect in the development of Halo, which uses cutting edge research-led techniques to identify and measure the benefits and outcomes that an organisation delivers.

Tags: Alison Bond
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