Surrogation

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Surrogation
Jaap de Jonge, Management Consultant, Netherlands
In wars and extreme poverty, desperate people use various kinds of inferior substitutes for products like bread, coffee and tobacco. These are called "surrogates". Likewise, in the human tendency or to confuse and substitute what’s being measured with the metric itself can also be called "SURROGATION". As we all know, a business strategy is typically long term oriented, and quite complex and abstract. So various tools and metrics like , , and are being used to cascade the strategy downwards in the organization, to make it more concrete and simpler to grasp, and to measure the progress made (in the short run). All fine. But sometimes managers and employees mentally mix up and replace the actual strategy with the hard metrics which were meant to assess whether the organization is succeeding at it. They might even start "gaming" the performance metrics. According to an interesting article by Professors Harris and Tayler surrogation is destroying a lot of value in businesses. W (...) Read more? Sign up for free
 

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