I realize that my last entry was fairly, well… adamant to say the least.  As you probably already know, we write and speak on the importance of metrics frequently (as I emphatically did earlier this week).  Everything that we do and ask you to do hinges on this principle.

We are certainly not alone.  For example, Tom Malone said, “If you don’t keep score, you are only practicing.”  Emery Powell noted that, “A strategy without metrics is just a wish.  And metrics that are not aligned with strategic objectives are a waste of time.”  Finally, some unknown but very wise manager once said, “Be careful what you measure—you might just get it.” 

By measuring something, you are stating to your employees, managers, stakeholders, and industry analysts that an activity is important.

Steven A. Melnyk, of the Department of Marketing & Supply Chain Management at Michigan State University, sums up as succinctly as I have seen, why metrics are so important:

“Metrics are important because of the functions that they provide, namely:
 
Control: Metrics enable superiors to control and evaluate the performance of the people working under them.  They also enable employees to control their own performance.

Reporting: This is the most commonly identified function of metrics.  We use metrics to report performance to ourselves, our superiors, and external agencies.
 
Communication: This is a critical but over-looked function of a metric.  We use metrics to tell people both internally and externally what constitutes value and what the key success factors are.  As pointed out previously, people don’t understand value, but they understand metrics.  As a result, value as implemented at the firm should influence the type of metrics developed.
 
Opportunities for Improvement: Metrics identify gaps (between performance and the expectation).  Intervention takes place when we have to close undesired gaps.  The size of then gap, the nature of the gap (whether it is positive or negative) and the importance of the activity determine the need for management to resolve these gaps.
 
Expectations: Metrics frame expectations both internally (with our personnel) and externally (with our customers).  Metrics help form what the customer expects."

Melnyk also discusses various categories of metrics.  For our purposes, let's take a look at predictive metrics.

“Predictive (also referred to as a process metric) is one that we can use to help predict our chances of achieving a certain objective or goal.  In many systems, the bulk of metrics are outcome-oriented, rather than predictive.  As a result, the measure system gives the managers little information on which they can predict their chances of meeting their objectives.  However, firms such as Texas Instruments are now turning their attention to the development of predictive metrics.  They recognize that such measures are far more useful to the users.”

It is the predictive metric that provides us the opportunity to track our clients' outcome metrics, such as number of candidates, number of interviews, and total hires over time, and then quickly convert these to provide a forecast of what you can expect to achieve with your recruitment efforts.

What else can we all measure collectively?  How can we measure it?  What behaviors should we track?  How can you use metrics with your agents?  What should they be measuring and tracking?  What happens if they don't measure?

Because …

“A strategy without metrics is just a wish.” 

Editor's Note:  This article was written by Dr. David Mashburn.  Dave is a Clinical and Consulting Psychologist, a Partner at Tidemark, Inc. and a regular contributor to WorkPuzzle.  Comments or questions are welcome.  If you're an email subscriber, reply to this WorkPuzzle email.  If you read the blog directly from the web, you can click the "comments" link below.