Managing by Metrics
One of the great promises of using CRM for nonprofit program management is the ability to manage by metrics. In theory, if we could track all efforts and all outcomes in a system, then we could uncover those predictive indicators that lead to desired outcomes. We could then make adjustments to the program operations itself to reach those desired outcomes. To a great extent, this is possible, however, it is much more complex than it sounds. One of the root causes of the complexity is the fact that we often are not looking at all of the variables and are only looking at a subset. Making decisions on a subset of variables can sometimes lead to incorrect conclusions. Since I have seen this logic trail unfold a few times, I thought I would share an abstracted example of such a situation.
Take for example, Acme Org, a human services organization that has implemented a robust CRM solution that tracks almost all aspects of it’s program operations. Below is one of the critical reports reviewed by the Executive Team each month:
The organization is considering the use of these metrics for determining promotions, salary adjustments, and bonuses. After initial review, the Executive team expressed concern about Jon’s performance to Jon’s manager. Jon’s manager on the other hand knew that Jon’s metrics were low because he was always thrown on to the toughest cases. Being on the toughest cases each month meant that Jon would have to spend more time with each client and would be responsible for defining new engagement processes for working through complex cases. Unlike the other client service reps Jon spent a lot of time researching and speaking to industry experts to identify best practices that could be used by Acme to help future clients. In short, Jon was expanding the organizational knowledgebase, capacity, and quality of service delivery. Unfortunately, none of this was being recognized in the monthly report. Jon’s manager decided to add a new metric into the monthly report that would help recognize Jon’s efforts. The revised report is below:
The revised report gave the Executive Team more insight into Jon’s efforts and the demands placed on the Client Services staff.
The point of the example is to proceed with caution when using Metrics for Management level decisions. They can be a very powerful tool when well directed; however, there is usually a story behind every piece of data and it is critical that the entire story is understood before program level decisions are made.
This has been a gripe I have presented many times especially with upper level management that doesn’t care much about anything except metrics. Metrics, surveys, and other forms of data collection should be used as an additional set of information not as fact.
Let me pose this question: How do you explain this concept to management that is set on using only metrics?
John, I think that is totally fair. I often wonder about the increased pressure we see across all organization on metrics. I don’t necessarily think this is purely the fault of upper level management. They are likely facing intense metrics pressure from their own Boards and Funders. I do, however, believe the art of effective metrics management is to look beyond the numbers to see the full story of what is actually unfolding at the ground level as well as at a high level.
Metrics do most people a disservice. Actually, they are very disrespectful of employees, but then that is the nature of the top-down command and control approach to managing people so prevalent today. Let me explain.
Leadership applies to people and denotes the sending of value standard messages to people which most of them then follow/use. Thus we say that they have been “led” in the direction of those standards. Leadership is one side of the coin called values, the other side being followership.
Leadership in the workplace consists of the value standards reflected in everything that an employee experiences because these standards are what employees follow by using them to perform their work. Most of what the employee experiences is the support or lack thereof provided by management - such as training, tools, parts, discipline, direction, material, procedures, rules, technical advice, documentation, information, planning, etc.
Leadership is not a process any manager can change. It happens inexorably every minute of every day because of the way people are. The only choice available to a manager is the standard (good, bad, mediocre or in between) which he/she transmits to employees.
Because of these characteristics, “followership” turns out to be a major force in managing people. Those managers who take advantage of it can become extremely effective at “managing their human capital.
For example, let’s look at the top-down command and control technique that is the most widely used method to manage people.
Top-down concentrates on producing goals, targets, visions, orders and other directives in order to control the workforce and thereby achieve organizational success. Concentrating on giving direction prevents these managers from doing much of anything else. Thus top-down treats employees like robots in the “shut up and listen, I know better than you” mode, and rarely if ever listens to them. By so doing this approach ignores every employee’s basic need to be heard and to be respected. In addition, not listening to employees makes top management ignorant of what is really going on in the workplace thus making their directives misguided at best and irrelevant at worst.
In top-down, nobody listens to employee ideas, nobody values their opinions, and nobody gives them any recognition. The only way that the workforce can deal with managers who treat them in this way is to disengage and ignore their behavior. In the workplace this is seen as being sullen, uncommunicative, having a poor attitude, low morale and/or apathy.
(During my first 12 years of managing people, I used top-down and was never aware of how bad my leadership was. It was not until I started really listening to employees that I began to understand.)
In this way and others, top-down demeans and disrespects employees sending them very negative value standard messages. The standards reflected in this treatment “lead” employees to treat their work, their customers, each other and their bosses with the same level of disrespect they received. No one can become committed to company goals while being treated so poorly.
This is the road to very poor corporate performance as compared to the results that would be achieved using a better approach. Top-down managers are their own worst enemies because they “lead” employees to the very worst performance. (In “The Human Side of Enterprise”, author Douglas McGregor named this “Theory X” and named the other extreme “Theory Y”, but he did not provide how to achieve it.)
If you want your employees to produce very high performance and eagerly embrace necessary changes, swing to the other end of the spectrum thus leading toward the highest possible performance. To do this, first get rid of all traces of a top-down approach. Everyone wants to do a good job, but don’t want to be ordered around like a robot.
Next, start treating employees with great respect and not like robots by listening to whatever they want to say when they want to say it and responding in a very respectful manner. Responding respectfully means resolving their complaints and suggestions and answering their questions to their satisfaction as well as yours, but most importantly theirs. It also means providing them more than enough opportunity to voice their complaints, suggestions and questions. Spend your time making your support reflect the very highest standards of all values by resolving their complaints and suggestions thus “leading” them to use the very highest standards.
And realize that the highest quality and most respectful “direction” is the very least since no one likes to take orders or really needs them except in emergency situations. Anyone routinely needing extensive orders should not be on your team.
This treatment leads employees to treat their work, their customers, each other and their bosses with great respect. Listening and responding respectfully also inspires them to unleash their full potential of creativity, innovation and productivity on their work giving them great pride in it and causes them to love to come to work.
You will be stunned as I was by the huge amount of creativity, innovation and productivity you have unleashed to say nothing of the fact that everyone will be far more ethical in their conduct.
Best regards, Ben
Author “Leading People to be Highly Motivated and Committed”