Deming and Measuring Performance
Paul Burke, Member
Yes, using (numerical) quotas can lead to incorrect human behaviours
due to the various emotions that they produce. But surely at the same time measures of performance are crucial to continuous improvement
. If you do not know how you performed last time (precisely and quantitatively) than how do you know if you improve next time.
Improving all the time is essential, however good or bad you are currently performing, but it needs to be measured, communicated and rewarded. The only way the English cricket team knew they had retained the ashes was by looking at the scoreboard - businesses need a scoreboard.
This debate shows the critical importance of choosing the right key performance indicators (KPI's) - the one's that motivate people and align to business goals.