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Are Scorecards and Metrics Killing Employee Engagement? By Adrian Ott; summary+commentary by Pierre Khawand

Posted by Pierre Khawand on Thu, Aug 18, 2011 @ 10:41 PM
  
  
  
  
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Summary

Adrian OttAdrian starts with a shocking story in which Delta personnel told U.S. Army soldiers who returning home from Afghanistan that they needed to pay $200 per person for each extra bag--not allowing them to proceed--a story that generated considerable buzz. So why didn't Delta employees apply better judgment and resolved this issue more elegantly?

Adrian uses this story to highlight an unfortunate trend in management: Rules and metrics becoming the driving factor in business, and limiting the ability of front-end customer-facing employees to use their judgment and make good decisions. Adrian highlights that while rules and metrics are important, rigid rules, which seem to be overly dominant, can backfire. The article concludes that instead of hiding behind rules, managers need to teach values and judgment, and give employees more leeway to make better decisions. Read Adrian's article in full!

Commentary

I found Adrian's analysis fascinating and insightful. The article made me question that value of leadership training which seems to be missing the issues highlighted above. I believe that organizations need to extend leadership training to all employees or maybe develop "followship" training that emphasizes good judgment and strategic thinking!

Discussion

What do you think? Are rules and metrics paralyzing employees and limiting their ability to make sound, customer-centered decisions? Do you agree that leadership training needs to be more inclusive? How would you address the issues highlighted by Adrian?

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Comments

Excellent article. Thank you for sharing it. I blame it all on the overuse of computers! Einstein is supposed to have said something to the effect that "Not everything that can be counted counts and not everything that counts can be counted." Unfortunately, modern managers want metrics and nothing but metrics. Many bad decisions are made because nobody could figure out how to count good feelings. Smaller companies do better but even they get caught up in the metrics web. One small bank in San Francisco puts out cookies every morning for their customers. They cookies cost them and don't add a dime to their 'bottom' line. I seriously doubt that anybody can measure the 'value' of those cookies but they create a welcoming feeling and a sense that the small bank is happy to have you there. Many clients overlook the bank's high fees because they appreciate the warm, friendly atmosphere. As soon as a larger bank buys them, you can bet that some MBA will eliminate the cookies because their 'contribution' can't be measured but the cost savings can be. A year after the merger, the big bank will wonder why they've lost so many of the well-heeled clients of the little, inefficient bank. I've seen it happen. They lose employees when they worry more about costs that can be counted than about competency that is hard to measure.
Posted @ Friday, August 19, 2011 7:04 PM by Al
I agree, Al, "Excellent article." I can't help but wonder if all of the pressure on profits today, coupled with the scarcity of jobs, contributes to this vicious cycle.
Posted @ Sunday, August 21, 2011 7:50 PM by Steve Loosley
I totally agree with this article! Focus has been pulled away from customer service to metrics. Customers have their own reasons for staying with companies for so long. Typically it is because they like how they are being treated. As a different commentor noted, customers are willing to put up with high fees or policies they may not like jsut because they feel welcomed by the company or are in good hands. When focus shifts to metrics, it's the customer that seems to lose.
Posted @ Thursday, August 25, 2011 10:33 AM by Katie Johnson
The new rules of engagement involve empowering front-line staff and giving them flexibility to make certain decisions without asking a supervisor. The case with the soldiers is a perfect example. It's not so much an issue of metrics, but more an issue of setting up systems that allow flexibility.
Posted @ Thursday, August 25, 2011 10:39 AM by Julie C
Thank you Al, Steve, Katie, and Julie for your comments. Congratulations Katie. You are this week's prize winner of The 24-Hour Customer: New Rules for Winning in a Time-Starved, Always-Connected Economy by Adrian Ott! Thank you all for your great contributions to the conversations!
Posted @ Thursday, August 25, 2011 6:38 PM by Pierre Khawand
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