Measuring the progress and success of a strategy

Plus the role of counterweight metrics in preventing catastrophic results from hitting the wrong metrics.

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Post Summary

• This post will answer a fundamental question: how do you measure the progress and success of your strategy?

• Not all metrics need to be quantitative and many goals can only be measured in a qualitatively fashion.

• Avoid having endless dashboards and find the handful of metrics that guide your actions

• Counterweight metrics are a fantastic tool to help you minimize the disastrous results that can arise from going after ambitious goals

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I. Measuring what matters in a strategy

A couple of months ago Sir Jim Ratcliffe, minority owner of Manchester United, announced a ban on remote work and told employees to seek “alternative employment” if they disagreed with the new policy. He cited a 20% drop in email traffic, on days when employees worked from home, as the undeniable proof of why remote work is not effective.¹

This is not a post on remote work. Four years after the pandemic, it is clear that remote work is ideal for some companies and individuals and less so for others. There’s no single approach that will work in all situations and all companies need to figure it out on their own.

This is a post on the metrics organizations use to measure the progress and success of their strategy. 

I hear what you’re thinking. 

“I would never use email traffic as a metric to measure success. I don’t even know where to see that statistic!”

That may be technically true but how do you know that you’re looking at the right metrics? 

Some strategic goals are easy to measure, such as revenue and profit, but other goals, such as improving internal communication or increasing innovation, are harder. If you choose the wrong metrics, you will never feel like you’re accomplishing enough.

It’s not about having endless dashboards or only relying on quantitative metrics. It’s about knowing when you have reached your destination and then working backwards.

II. How will you know when you have accomplished this objective?

Let’s imagine that your organization has selected improving internal communication as one of your three strategic goals. Surveys, interviews and one-on-one conversations all say the same thing. Employees feel that the environment is chaotic, uncertain and there are too many demands on them.

What metrics will you use to measure progress and eventual success?

This is a common situation, especially for teams that have embraced remote work. The lack of consistent in-person schedules wrecks havoc on traditional communication aka walking up to someone’s desk and talking to them.

There are two types of metrics we could use: quantitative and qualitative. Depending on your personality, you may have a bias for either one. Neither is better than the other, even if you think that quantitative metrics are more “objective”, whatever that means.

I have helped several organizations with this goal and I start by asking them one question.

How will you know when this has been accomplished?

I’m not asking for perfection (“everyone understands everything”) or some unrealistic standard (“individuals never have a disagreement”). I’m interested in a reasonable destination that you would know when you see it. 

Here is how previous clients have responded to this question.

• I wouldn’t have to explain the same idea over and over again

• I would hear fewer complaints about lack of transparency

• The team would not feel constantly overwhelmed

• We would not hear bad communication as one of the reasons why a team member left the company

Some of these answers could be converted into a quantitative measure but that’s not always needed. ²

You cannot focus on improving communication forever. You need to know when you can focus your energy on other areas.

There is one more catch regarding metrics, especially those metrics that can be disastrous if you hit them.

III. The Ford Pinto cautionary tale on hitting the wrong metrics