Challenging conventional wisdom related to defining business metrics: a behavioral approach

Abstract

Purpose

Measurement drives behavior. Unfortunately, most performance measurement initiatives overlook this fact. Implementations are performed top‐down with strategy as the starting‐point. There needs to be a better understanding of the cultural context of the metrics (What is driving the behaviors?) and a better understanding of what metrics are to define (How do we drive the right behaviors through measurement?). The purpose of this paper is to explore the notion of a context‐based approach to performance metrics – by examining an organization's negative values – and the notion of a content‐based approach – by introducing the concept of business interface metrics.

Design/methodology/approach

The article analyses business metrics.

Findings

The paper demonstrates the need to use interface metrics in order to better manager processes and deliver organizational values.

Originality/value

To get new insights, sometimes conventional wisdom needs to be challenged. Following best practices around metrics can prevent companies from reflecting on the effect of the metrics they are trying to put in place. By coming up with a different approach (business interface metrics and negative values), interesting insights can be gained. Moreover, taking a fresh approach ensures that new thinking takes place and that there are fewer conformist paths to fall back on.

Citation

Buytendijk, F.A. (2007), "Challenging conventional wisdom related to defining business metrics: a behavioral approach", Measuring Business Excellence, Vol. 11 No. 1, pp. 20-26. https://doi.org/10.1108/13683040710740899