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Numbers Games: Summary of The Tyranny of Metrics by Jerry Muller

June 19, 2023 By Nagesh Belludi Leave a Comment

'The Tyranny of Metrics' by Jerry Z. Muller (ISBN 0691174954) The Tyranny of Metrics (2018) by Jerry Muller, a historian at The Catholic University of America, is a poignant reflection on our society’s obsession with measurement. Muller’s eloquent arguments shed light on the dual nature of metrics—they can be valuable diagnostic tools, yet their misuse as the sole measure of success and tied to rewards poses significant problems. Drawing upon many empirical examples across various fields, Muller skillfully reveals the inherent pitfalls of our reliance on metrics.

Consider the initial allure of measuring and publicly disclosing the success rates of surgeons performing specific procedures. At first glance, this transparency appears beneficial, empowering patients to make informed decisions. However, a disheartening trend emerged once these performance scorecards entered the public domain. Surgeons, fearing a decline in their reported success rates, started avoiding the most complex cases. Shockingly, even cardiac surgeons refused to operate on critically ill patients, jeopardizing lives to protect their perceived success.

Muller further elucidates the case of hospital emergency rooms, where the pursuit of improving the metric for timely patient admission became paramount. In a tragic turn of events, the desire for statistical accolades overshadowed the urgent needs of the suffering. Ambulances formed a distressing queue outside the facility as the metric was manipulated, leaving genuine care and compassion languishing in the background.

In 2009, when Medicare implemented public reporting and penalties for hospitals with higher-than-average 30-day readmission rates, hospitals resorted to manipulating the metric. They cleverly distorted the numbers by categorizing many readmitted patients as outpatient services, concealing them and evading penalties.

Education, too, falls victim to the obsession with metrics. The relentless focus on using metrics to influence teacher retention or determine school closures has given rise to a phenomenon known as “teaching to the test.” Educators find themselves trapped, compelled to prioritize teaching subjects aligned with standardized exams, such as math and English while neglecting crucial skills like critical reading or crafting extended essays. Pursuing metric-driven success inadvertently sacrifices holistic education on the altar of narrow measurement.

During the Vietnam War, the US Defense Secretary introduced the “body count” metric. This idea, advocated by US Defense Secretary Robert McNamara, suggested that a higher number of enemy casualties indicated greater success and brought the US closer to victory. However, an unintended consequence emerged when the body count became an informal measure for ranking military units and determining promotions. In this dangerous pursuit of numbers, the metric lost touch with reality, often inflated to fulfill the desire for perceived success. Counting bodies became a precarious military objective in and of itself, overshadowing the true essence of the conflict.

Muller’s perspective does not advocate completely disregarding metrics as a management tool. Instead, he emphasizes the importance of utilizing meaningful and comprehensive metrics that contribute to informed decision-making. He distinguishes between measurable aspects and measurements that hold true significance.

To achieve this, Muller discourages starting with the metric itself. Instead of asking, “What metrics should we use?” he suggests a more practical approach: “What are we trying to accomplish?” This approach involves establishing goals and metrics that evaluate achieving desired outcomes and customer satisfaction (effectiveness) while efficiently utilizing available resources.

In a compelling concluding chapter, Muller encapsulates his central thesis with a resounding declaration: “Measurement is not an alternative to judgment; measurement demands judgment.” This statement emphasizes the need to make informed decisions regarding whether to measure, what to measure, how to interpret the significance of measurements, whether to assign rewards or penalties based on results and who should have access to the measurements.

Recommendation: Skim Tyranny of Metrics. This tome serves as an authoritative guide for comprehending the profound influence of numerical indicators on the very foundation of modern society. It should be considered essential reading for anyone seeking to understand why organizations often operate below their full potential.

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Filed Under: Managing People, Mental Models, Sharpening Your Skills Tagged With: Decision-Making, Ethics, Goals, Motivation, Performance Management, Persuasion, Targets

Treat Employees Like Volunteers

April 20, 2023 By Nagesh Belludi Leave a Comment

Treat your employees as volunteers—as if they’re free to leave at any time. Volunteers want to connect to a mission. They want to make an impact by investing their time and energy because they want to, not because they need to. Moreover, unlike employees, volunteers aren’t constrained by the command-and-control structure.

You’ll pay greater attention to the non-monetary needs of your employees, and you’ll better align your goals and their goals. You’ll be more intentional, preferring transformational motivation, not transactional motivation.

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Filed Under: Leading Teams, Managing People Tagged With: Great Manager, Human Resources, Motivation, Performance Management, Workplace

These are the Two Best Employee Engagement Questions

March 30, 2023 By Nagesh Belludi Leave a Comment

Engaged employees are more likely to be effective, stay with your company, and nurture a favorable corporate culture. To gauge employee engagement levels regularly, run a pulse survey and ask these two questions:

  1. To what degree are you proactively engaged in improving the tasks you’re responsible for? Does your workplace actively seek your ideas to make those improvements?
  2. To what degree do the processes that you are working with enable you to be highly successful in your job?

Seek ideas meaningful for improvements from people on the job. Demonstrate commitment to taking significant action and follow through.

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Filed Under: Leading Teams, Managing People, MBA in a Nutshell Tagged With: Great Manager, Human Resources, Leadership, Motivation, Performance Management, Workplace

Can You Be Terminated for Out-of-Work Conduct?

March 20, 2023 By Nagesh Belludi Leave a Comment

An employee’s off-duty conduct is generally off-limits as far as employers are concerned, and an employer can’t terminate an employee for conduct outside work if that termination would amount to unlawful discrimination.

However, exceptions exist if the misconduct outside the workplace poses a serious risk to the employer’s business.

  • In employment-at-will states, employers can terminate an employee for a good reason, a bad reason, or no reason at all.
  • If an employment contract is in place, it likely outlines the specific types of conduct for which an employee can be terminated. So the rights and obligations of the employer and the employee are set contractually.

In many cases, though, no clear-cut guidelines can help determine the course of the action, especially for off-duty, private deeds with moral or political overtones that aren’t rightfully the company’s concern. However, the employer can terminate if the employer can establish a logical, if not obvious, connection between an egregious off-duty behavior having some bearing on their job (e.g., substance abuse that impairs the ability to perform work,) posing a reputational risk, damaging the employer’s interests, portrays the employer in a poor light (e.g., the employee was wearing a uniform or sporting the employer’s logo ) or is incompatible with the employee’s duty (e.g., a poorly worded social media post painting the employer or the industry in a poor light, or inciting hatred and hostility.) The devil is always in the detail.

Idea for Impact: Any out-of-hours misconduct with some sufficient or necessary association with the employment is grounds for termination. Best to know the employer’s policy on what makes up a breach of the company’s values, public position, and policies.

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What Every Manager Should Know Why Generation Y Quits

January 12, 2023 By Nagesh Belludi Leave a Comment

Millennials, or the Generation Y or Gen Y cohort, are much better educated. They’re tech-savvy, more achievement-oriented, and better problem-solvers than preceding generations.

Millennials also tend to be restless with their career progression, demanding salary and job flexibility. They’re quick to move on if something better beckons. Millennials aren’t interested in the financial success that inspired the Boomers or the independence that characterizes the Gen Xers, but in personalized career paths.

Employers often gripe that millennials seem entitled and overly ambitious. And even if they’re high-maintenance, they’re hungry and willing to do what it takes to prove themselves.

To prevent Gen Y retention problems, create an environment where they have room to make an impact and give them the autonomy, support, and training to get there.

Idea for Impact: Millennials become disengaged quickly in the workplace—they’re impatient with things that do not lead to learning or advancement. They never stop questioning the status quo; they don’t want to be told they must do their time and wait in line. Give them a way to move up promptly, with fun and challenges along the way.

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Filed Under: Career Development, Managing People Tagged With: Career Planning, Coaching, Employee Development, Feedback, Human Resources, Job Transitions, Mentoring, Performance Management, Personal Growth

Goal-Setting for Managers: Set Tough but Achievable Challenges

December 15, 2022 By Nagesh Belludi Leave a Comment

Finding the middle ground between setting the bar too low and too high can challenge managers.

Sure, aggressive goals can spark great accomplishments, but they also can induce employees to bend or break the rules in pursuit of those goals, as the Wells Fargo and Volkswagen scandals illustrate.

When employees get comfortable with their usual tasks, it’s time to push them outside their comfort zones. New responsibilities can propel employees to take on new challenges and learn new things.

However, before giving employees new tasks, take away some of the older responsibilities they’ve already mastered. Many people feel they have an unrealistic amount of work to do already. If you aren’t prudent enough to keep your employees’ workloads in check, giving “stretch” assignments can lead to burnout, not growth.

Idea for Impact: Goals that are too high or low can be demotivating. Set goals that are challenging and inspiring but with extra effort, realistically attainable.

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Filed Under: Leading Teams, Managing People Tagged With: Coaching, Employee Development, Goals, Motivation, Performance Management

Are Layoffs Your Best Strategy Now?

November 28, 2022 By Nagesh Belludi Leave a Comment

We’re in a demand slump; if you think downsizing will cut costs and shore up the bottom line, consider the unexpected consequences of layoffs.

Hefty severance pay, outplacement services, and other direct costs can add up quickly, and indirect costs can be substantial. E.g., losing experienced employees can precipitate lasting damage to your business. The direct costs can wipe out any short-term financial benefit if new hard-to-find employees are to be hired and trained within six to twelve months when the downtrend stops.

Then there’s the trap of believing that things will get better soon and downsizing the smallest number of people in anticipation of a quick turnaround. And when that expected miracle doesn’t materialize, you’ll wind up making successive cuts. That’s awful for the morale of the employees spared. The best employees won’t feel indebted to soldier on and may start casting around for new offers, terrified that they will be among the next to be cut.

Idea for Impact: Layoffs may not be the best strategy for grappling with hard times. Examine not just the cost of labor but also the value created by labor. Consider the trade-offs and try furloughs, pay cuts, job sharing, and scaled-down hours instead, depending on when you foresee business rebounding. You’ll spread the pain of the downturn more broadly, keep talented employees, earn loyalty, and better position your company for recovery.

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Filed Under: Leadership, Leading Teams, Managing People Tagged With: Hiring & Firing, Human Resources, Leadership, Management, Performance Management, Strategy

Never Skip Those 1-1 Meetings

August 27, 2022 By Nagesh Belludi Leave a Comment

The weekly 1-1 meeting with direct reports is usually the first casualty of managerial overload. A few email exchanges or ad hoc encounters aren’t a reliable alternative for the open line of communication set forth by a regular 1-1 meeting, especially if an employee needs a problem addressed or priorities adjusted in changing situations.

Idea for Impact: Keep your commitment to do whatever is feasible to preserve your 1-1s with direct reports—in both schedule and content—even if it means having an abbreviated meeting or adjourning to later in the week.

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How to Lead Sustainable Change: Vision v Results

June 2, 2022 By Nagesh Belludi Leave a Comment

In the Drucker Foundation’s Leader to Leader (1999,) Harvard Business School professor John Kotter proposes one of my favorite visuals on the essence of noticeable results that bear witness to a leader’s vision of change:

This illustration encapsulates why some organizational change initiatives succeed while others never get off the ground or break down after a while. Kotter observes,

Results and vision can be plotted on a matrix that has four dimensions. Poor results and weak vision spell sure trouble for any organization. Good short-term results with a weak vision satisfy many organizations—for a while. A compelling vision that produces few results usually is abandoned. Only good short-term results with an effective, aligned vision offer a high probability of sustained success.

Idea for Impact: The only way a leader can produce a well-paced, sustainable, and transformational change is by mobilizing the people around her to appreciate the benefits for them in her vision of the desired future. Ongoing results oblige visibility into progress and will catalyze the organization’s commitments.

Read Kotter’s Leading Change (1996,) an influential missive on change management.

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Filed Under: Managing People, MBA in a Nutshell Tagged With: Coaching, Discipline, Feedback, Leadership Lessons, Management, Motivation, Performance Management

Direction + Autonomy = Engagement

May 26, 2022 By Nagesh Belludi Leave a Comment

The best way to achieve results as a manager is to give your team clear objectives and then allow them to approach the tasks in whatever manner that makes sense. You can suggest deadlines, schedule check-in appointments, and make yourself available for questions. People tend to take more pride in their work when they aren’t micro-managed. Delegate results when you can and interfere only when you must.

Observe the strengths and weaknesses of each employee and assign tasks based on what will allow each individual to thrive. When employees feel invested in a task, whether because they volunteered for it or because it employs their strengths, they are more likely to take ownership of their work and excel on the project. Have faith in your employees’ ingenuity and give them much latitude in how they do things.

Idea for Impact: Often, the most potent motivator for employees isn’t money—it’s the opportunity to learn, expand responsibilities, contribute and gain appreciation, and be recognized for achievements.

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  3. General Electric’s Jack Welch Identifies Four Types of Managers
  4. Bringing out the Best in People through Positive Reinforcement
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Filed Under: Managing People Tagged With: Coaching, Feedback, Great Manager, Management, Mentoring, Performance Management, Workplace

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About: Nagesh Belludi [hire] is a St. Petersburg, Florida-based freethinker, investor, and leadership coach. He specializes in helping executives and companies ensure that the overall quality of their decision-making benefits isn’t compromised by a lack of a big-picture understanding.

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