How To Develop Your Skill For Great Success And Happiness Including Become CPA? | Additional special tips From Admin
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The Tyranny of Numbers
Metrics are a fact of business life—essential to measuring performance and executing strategy. But they can be pernicious. In “Don’t Let Metrics Undermine Your Business,” Michael Harris of Kenan-Flagler Business School and Bill Tayler of the Marriott School of Business demonstrate that performance management is frequently conflated with strategy—producing all sorts of unwelcome consequences. The problem is that business metrics are inherently imperfect; most are used to quantify an intangible goal. Even earnings, the most common measure, represents an abstract concept. As the authors say, “Your performance management system is full of metrics that are flawed proxies for what you care about.”
Consider what happens when a company makes “delighting the customer” a strategic objective. As Harris and Tayler note, the company will probably track its progress through online customer surveys. But then employees start thinking that the strategy is to maximize survey scores rather than to deliver a great customer experience. So they may begin pestering customers to give them high scores or send out constant nudges to take the survey—pop-ups, follow-up emails, robocalls. These make for a decidedly undelightful experience.
Harris and Tayler show that we often confuse what’s being measured with the metric itself—a tendency called surrogation. This can be especially dangerous when the metric is not in fact well matched to the strategy. Consider what happened when Wells Fargo made long-term banking relationships a strategic priority and used cross-selling as its metric. Employees scrambling to meet sales goals opened up millions of deposit and credit card accounts without customer consent. The impact has been staggering. The bank has faced billions of dollars’ worth of fines, legal damages, and litigation expenses. Surrogation in this case led to prioritizing sales numbers over the long-term health of the organization and its stakeholders. That’s surely the very opposite of sound strategy.
The Tyranny of Numbers
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A note for you if you pursue CPA licence, KEEP PRACTICE with the MANY WONDER HELPS I showed you. Make sure to check your works after solving simulations. If a Cashflow statement or your consolidation statement is balanced, you know you pass right after sitting for the exams. I hope my information are great and helpful. Implement them. They worked for me. Hey.... turn gray hair to black also guys. Do not forget HEALTH?
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