Performance Measurement: How Data Sets Us Free

This week’s article is the fourth in a series on Whole Life Performance. The first three provided a framework for identifying our action priorities and translating them into commitments, projects, and meaningful actions. That’s a start, but we need to know if our actions are making a difference. If they’re not, we’ll likely quit. So… how can we know that we’re not wasting our time and energy? Read on…?

Some of you are already feeling anxious reading this week’s title. There’s something about performance measurement that provokes that reaction. Often, it’s because we’re defining the term wrong. We think of the process as judgmental in nature, focused on pointing our failures, and possible being punished or ridiculed.?

But there’s a more helpful definition… viewing the process as developmental. That’s less intimidating, and more useful. Developmental feedback acknowledges progress and helps identify areas for improvement.

There’s a great corporate example of the difference between these two mindsets in a YouTube video of a Stanford University talk by Alan Mullally. As the new CEO of Ford Motor Company, he implemented a weekly business plan review. Take the time to watch his presentation. It’s got plenty of application value for us as individuals.

Noe you know the source of this article’s subtitle. It’s my favorite line from Mulally’s talk, “The data sets you free.”?That’s the mindset we need to design meaningful performance measurement… seeking the truth and applying it to our improvement efforts. Plus, sharing the truth with others invites their support for our efforts.

Welcome to the World of Metrics

It’s probably too soon for this article to have made you a fan of performance measurement but stick with me. Let me introduce a new term, metrics. Metrics are the systems of measurement we use to establish performance measures and targets and collect data on how we’re doing relative to those objectives. They reveal the consistency of our actions, the improvement in our capabilities, the impact we’re having, and how these success indicators are changing over time… for better or worse.

The underlying logic of effective metrics is that we can prove that ‘IF… we perform certain actions, THEN… we will see improvement in our capabilities, SO THAT… we can impact our important action priorities. Good metrics reveal the truth about performance which empowers us to continue improving. That’s how data sets us free.

We’ve been exposed to a host of performance metrics since early in our lives. Attendance tracking, grades, test scores, teacher evaluations, achievement awards, etc. tracked performance at school. Other metrics kicked in at work… KRAs, KPIs, OKRs, Oh My! (Shamelessly borrowed from The Wizard of Oz, but at least acknowledged.) It’s no wonder we’re anxious about performance measurement. We’ve been on the receiving end of imposed systems, the usefulness of which we’ve often questioned.

Making Metrics Meaningful by Measuring What Matters

(Yes, I deliberately used a lot of ‘Ms’ in that title… just trying to keep it light given the tendency for this topic to seem boring… trust me, it isn’t, and it’s important!)?

What makes metrics important is that they provide proof that our efforts are paying off. We can know for sure that we’re fulfilling our commitments, completing our projects, and making progress on our priorities. That’s what makes metrics matter... it’s not our ‘score’, it’s the developmental feedback that helps us learn and improve.?

To be most effective, we need to measure performance at different points along a ‘performance chain.’ We need different measures, targets, and methods to track different indicators of success and answer different performance questions at each point. For example, we ‘count’ actions to monitor consistency. Further along, we compare capacity over time to monitor improvement in how we perform those actions. Even further along the chain, we measure the impact of those actions and capability improvements on the priorities that are driving our improvement efforts. ‘IF (we complete these actions), THEN (we’ll see increased capabilities), SO THAT (we’ll achieve meaningful impact.)’?

Counting Actions

As stated above, we ‘count’ actions to demonstrate consistency. There’s been a lot written recently about how to establish habits. Most of us monitor the frequency and/or duration of certain repeated actions. Sustaining ‘streaks’ may well motivate us to keep adding checkmarks, and not break the chain. A notable example by a popular productivity writer was running at least a mile for 1,100 straight days, including the day before giving birth.?

That may seem over the top, but there’s real benefit in monitoring the consistency of behaviors we want to become habitual, and we each likely has a handful of those we should work on. The number of books, blogs, and tracking apps produced shows how popular habit tracking has become… it’s become a profitable cottage industry!.

Most influencers in this area also suggest that we ‘batch’ these behaviors in intentional routines, which some call ‘habit stacking.’ By linking our habits together with other ‘routine’ behaviors scheduled at set times, and perhaps including immediate rewards, we’re more likely to engage in our ‘target’ habit behaviors. Frequency of routines can also be ‘counted’ and timed. It also demonstrates consistency on doing the ‘IF’ in the performance principle framework.

Comparing Capability

Beyond being consistent in our ‘doings’, we also need evidence that proves our performance of those actions is producing improved capability to produce results. This is the ‘THEN’ part of the performance principle, because it captures the behavioral improvement we believe will improve our impact. At this level we need comparative measures that capture changes in our capabilities.?

The simplest measure of capability is the production of a specific, tangible end product… a report or set of recommendations, an updated room, a purchase, a documented level of proficiency, etc. As Yoda said in Star Wars, “Do or do not. There is no try.” Such measures usually include timelines.?

Other improvements require us to capture measurable changes like improved results, increased ratings, or reduced problems. These can be measured in percentage changes, or as progress toward a set standard or benchmark. Time is a factor in that we monitor these performance changes over time, and usually at set intervals.

This is where we can benefit from implementing performance improvement practices, intentional, strategic approaches that have proven reliable and effective in producing improvement in specific areas of performance. There are many examples of such practices in areas that have an established foundation of knowledge and skill, where both learning and guided application are required to achieve a standard. Improving practices is a very effective way of jump-starting performance improvement.?

That’s why there’s been exponential growth in the number of online courses, YouTube demonstrations, how-to books, and learning circles. They’re popular because they shorten the learning – and improvement – curve by sharing proven practices. Some add coaching and other forms of performance feedback to reinforce rapid development. The best of these help us learn, and work, smarter versus harder.

Confirming Impact

Ultimately, we want evidence that our consistency and increased capability are producing significant progress on our action priorities. This is the ‘SO THAT’ part of the performance principle framework, the ‘why’ that’s driving us to make the effort. It proves that consistency and increased capability make a meaningful difference.

Metrics at this level are the most difficult to implement. Sometimes that’s simply because of the delay between actions, improved capabilities, and impact. Another challenge is to track measures that rely on external feedback. We might feel great about our actions and improved capacities, but impact must come from others. For example, did our more frequent contact and more open communication with someone help us collaborate more productively? We may think so, but do they? A basic lesson about impact measures… it’s best to involve any ‘external raters’ in their design.

Celebrating Success

There’s one more aspect of performance measurement not often mentioned, and that’s celebration. Let’s look at two aspects: rituals and ‘parties.’

Rituals are ceremonies that recognize progress and reinforce its meaning. Rituals can be engaged in with others or on our own. Private celebrations of or progress can be very simple but still meaningful. Rituals can involve symbols, words, Instagram posts, journal entries, or other ways of acknowledging our progress. They are special times, carefully planned, and provide opportunities to reflect and appreciate progress. Or, they can involve others and be designed, scheduled, and led by them.

Which brings me to parties! We all need them from time to time… opportunities for joyful reflection, shared with people are important to us including those who contributed to our success. Celebrations are a powerful means of acknowledging how good performance data frees us to keep learning, growing, and changing our world.

What’s next?

Next week’s article will be on how to deal with performance failures. I’ll share a simple diagnostic framework to identify the source(s) of underperformance, and specific ways to turn the corner from failure to success.

By the way, my first bi-weekly blog post is finally online! It includes a tool, Personal Scenario Planning, that I think you’ll find both fun and helpful. Here’s a link to join my mailing list and get future posts automatically in your Inbox. As a sign-up bonus you’ll receive a copy of my ‘Digging Out’ monograph which I’m finishing up this week.