In: Operations Management
How could metrics abuse begin to develop in an organization? Please explain.
Answer: Metrics are increasingly used in the organizations for measuring performance at various levels. They are considered to be an evidence based methodology for decision making. But at times metrics are over relied upon and taken as the only way for ascertaining the actual performance of the organization. Matrices are considered to be supreme and flawless. This is point where the metrics abuse starts to develop due to overreliance on metrics. Metrics are not always perfect and can only capture the quantitative aspects. Organizations also have qualitative aspects which the metrics do not capture. But due to ease of developing and measuring performance, matrices are used for measuring performance at each level in the organization no matter whether it is logical or not. Thus when the culture of “only the number matter” starts developing inside the organizations, the metrics abuse starts. The matrices are overused and also often numbers are manipulated by using matrices.