Understanding Metrics
A large part of understanding metrics, and using them properly is understanding why. Why we may want to report them up the chain (of command), why we ask to see metrics from below, and why we collect metrics for ourselves.
Before we examine each of these…we need to review the probable outcomes of showing metrics. When we show metrics (data) to management, the most common response is that management will try to solve our problems - even if one doesn’t exist. If we don’t have explicit reasons for showing metrics and if we do not control the event, management will ask pointed questions thereby making themselves look knowledgeable and then they will attempt to solve our problems. This is not their fault. When we lose control of the event, management assumes that the reason we are showing data is to get their inputs on how to solve our problems. The only way to combat this tendency is to know why we are showing the metrics and keep the interaction focused.
Why report metrics up the chain?
Why in the world would we want to show metrics, let alone data, to our boss? Definitely NOT to have the boss solve our problems. That’s our job and at worst, if we need their help, we want to ask for what we think is needed…not just present the problem. We have to offer solutions. So, why would we report metrics to our boss? There are two reasons I know of.
1. To inform. We show data to our bosses so that they become more aware. This is dangerous, because most managers have a hard time seeing data without reacting. If you truly want to make your boss aware of something, and that is your only intent, make sure that what you show her has no chance of being construed as a problem. One example may be to show her the number of projects or goals your group is working on. Just to keep her up to speed. Or to share information so when she meets with her boss, she’ll be well versed on the “hot” topics.
2. To gain support. This is the best reason to show metrics to your boss. This includes selling your management on a need, to gain resources, or to get a decision. These all really tie together. Once we’ve identified a problem and determined a solution, we go to management to get approval. With that approval comes the allocation of necessary resources. To get management to give us the resources and approve our solution, we have to sell them on the need (problem). It is important for you to have already solved the problem and be proposing a solution (and it’s smart to have a couple of alternatives in your “back pocket”). The only decision you should seek from management is a go or no-go for your proposal. You do NOT want management coming up with solutions to problems. Their job is to manage resources, not solve your problems.
Why a boss would ask for metrics (data)?
The reasons our boss should want to see metrics are corollaries to the reasons we should want to show them. To become informed (curiosity) or to help with making a decision. Unfortunately, the usual reason we assume we’re being asked for the metric is because our boss doesn’t trust us.
1. To become informed. From the boss’s point of view, lack of information is a driving factor. New managers especially feel like they need more information to better understand the business and better manage resources.
2. To make a decision. Again, when a new manager comes on board, many times she will ask for supporting data before making any critical decisions. While there is a lot to be said for intuition, working with data is a helpful way to build support and gain credibility.
3. To trust lower levels. This is a risk with asking for data. This risk can be mitigated through clear communication and strict adherence to proper rules for how to use (and not use) metrics. If the manager truly does not trust her direct reports…there are other problems, problems that can not be solved with metrics. The issue of trust is worthy of a whole thread of its own.