Wednesday, October 12, 2011

LTM 18. Measure Your Performance

18. Measure Your Performance
The advice ―measure twice and cut once‖ is especially useful for
carpenters, tailors, and carpet layers to ensure accuracy. However, taking
measurements is vital for anyone who wants to improve their
performance.
Dr. H. James Harrington—involved in quality and performance
improvement projects since the 1950s—tells us why taking
measurements is absolutely necessary:
Measurement is the first step that leads to control and
eventually to improvement. If you can’t measure
something, you can’t understand it. If you can’t
understand it, you can’t control it. If you can’t control it,
you can’t improve it.
Who Measures?
Any organization, team, or individual who wishes to perform at a higher
level or accomplish more must measure their progress.
To clarify, consider if:
 Baseball players never knew their batting average
 Advertisers did not measure the number of people who
responded to an ad
 Golfers did not keep track of their scores
 Online shopping sites did not track the conversion rate of website
visitors to customers
 Students never knew the results of their tests
 Customer service centers did not measure how long customers
were on hold
Without measuring performance, how would they know when they
improved?
Why Measure?
The very nature of knowing that something is being monitored causes us
to work harder and perform better. There’s actually proof of this—it’s
called the Hawthorne Effect. Coined in 1955 by Henry Landsberger, the
Hawthorne Effect describes a form of reactivity on the part of people
whereby they improve an aspect of behavior being measured simply in
response to the fact that the measurement is taking place.
Positive things happen when you measure your performance:
 You are able to set goals and evaluate your progress.
 You always know exactly where you stand at any time.
 You can quickly and accurately trouble-shoot your problems.
 You can identify weaknesses to strengthen or skills to refine.
 You are able to see the results of your refinements.
How to Measure
To develop or improve any area of your life, you need to do three things:
1. Know your starting point. This is often referred to as your
benchmark or baseline—the point from which all progress is
measured.
2. Set a goal. Noted psychologist Arnold Glasgow said, “In life, as
in football, you won’t go far unless you know where the
goalposts are.”
3. Determine how you will measure your progress. Taking
measurements isn’t difficult, but it does take time. For example,
if you want to save money, carry a small notepad and write down
everything you buy and the price paid for each item.
You need to develop an action plan. Whether in business, sports, or
school, you can’t improve what you don’t measure. When you track and
measure your results each month, you will have new benchmarks that
you can strive to improve upon the next month. If you focus on
improving your results month after month, you will begin to see amazing
changes in your performance and results.

Are you ready to get started? Here’s a five-step plan.
1. Identify and list the parts of your life that you want to improve.
This is a critical component to your success.
2. Document your starting point. As an example, if you want to
increase your net worth, subtract your liabilities from your assets
and determine your starting point.
3. Set your goals. If you want to double your sales over the next 12

4. Determine the key factors that will influence your success. What
are the activities that, if done correctly and consistently, will help
you achieve your goals?
5. Create a means of measuring your actions and your results. For
the concrete measurements like weight, sales targets, and income,
use a notebook or software program to record the numbers. With
respect to the intangibles, like becoming more personable or
developing more discipline, keep a journal to document your
progress.

Remember: You can’t improve what you don’t measure.
As you measure your actions and results, continue to look for ways to
make refinements. This is all part of the ongoing process of striving for
excellence to be the best at what you do.
When you begin to track your results,
the refinements you need to make will be obvious.

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