"You get what you measure"

Owners and CEOs of measure-managed companies are frequently surprised to see welcome changes in employee behavior when certain measurements and reports are established.

There seems to be a competitive streak in most people, one that makes them want to outdo the "company average," or "the other store," or even their own previous performance.

Maybe it has to do with raising their daily activities from "humdrum" to the level of a game. Maybe the sense of competition is empowering. Whatever drives the phenomenon is open to debate. But one thing is demonstrated in practice: people don't necessarily do what you expect; they do what you inspect (and report.)

This phenomenon is part of what drives the proven success of our Balanced Scorecard package. Of course, it cuts both ways. Measure the right factors and things get better. Measure the wrong ones and things get worse.