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Metrics: you are what you measure!

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  • Hauser, John
  • Katz, Gerald

Abstract

Metrics are used by firms for a variety of commendable purposes. The authors maintain that every metric, however used, will affect actions and decisions. But, of course, choosing the right one is critical to success. The authors focus on the selection of good metrics and, based on their own experience and the academic literature, summarize seven pitfalls in the use of metrics which can cause them to be counter-productive and fail. The article then goes on to outline a seven-step system to design effective, 'lean' metrics, which depends on a close understanding of customers, employees, work processes, and the underlying properties of metrics themselves.

Suggested Citation

  • Hauser, John & Katz, Gerald, 1998. "Metrics: you are what you measure!," European Management Journal, Elsevier, vol. 16(5), pages 517-528, October.
    • Handle: RePEc:eee:eurman:v:16:y:1998:i:5:p:517-528
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    Cited by:

    1. Attilio Bruni, 2013. "Le metriche di marketing nel turismo. un?indagine esplorativa sui comportamenti manageriali delle imprese turistiche profit oriented," MERCATI & COMPETITIVIT?, FrancoAngeli Editore, vol. 2013(2), pages 105-129.
    2. Neil A. Morgan & Lopo Leotte Rego, 2006. "The Value of Different Customer Satisfaction and Loyalty Metrics in Predicting Business Performance," Marketing Science, INFORMS, vol. 25(5), pages 426-439, September.
    3. Brooks, Mary R., 2006. "Chapter 25 Issues in Measuring Port Devolution Program Performance: A Managerial Perspective," Research in Transportation Economics, Elsevier, vol. 17(1), pages 599-629, January.
    4. Kaveh Asiaei & Nick Bontis & Omid Barani & Ruzita Jusoh, 2021. "Corporate social responsibility and sustainability performance measurement systems: implications for organizational performance," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 32(1), pages 85-126, March.
    5. Henner Gimpel & Dominikus Kleindienst & Daniela Waldmann, 2018. "The disclosure of private data: measuring the privacy paradox in digital services," Electronic Markets, Springer;IIM University of St. Gallen, vol. 28(4), pages 475-490, November.
    6. Moses Nyakuwanika & Huibrecht Margaretha van der Poll & John Andrew van der Poll, 2021. "A Conceptual Framework for Greener Goldmining through Environmental Management Accounting Practices (EMAPs): The Case of Zimbabwe," Sustainability, MDPI, vol. 13(18), pages 1-26, September.
    7. Alina Almã?an & Cristina Circa & Mãdãlina Dumitru & Raluca Gina Gu?e & Drago? Marian Mangiuc, 2019. "Effects of Integrated Reporting on Corporate Disclosure Practices regarding the Capitals and Performance," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 21(52), pages 572-572, August.
    8. Cedergren, Stefan & Wall, Anders & Norström, Christer, 2010. "Evaluation of performance in a product development context," Business Horizons, Elsevier, vol. 53(4), pages 359-369, July.
    9. VAN CAMP, Jelle & BRAET, Johan, 2013. "Proposing a taxonomy for performance measurement systems' failures," Working Papers 2013004, University of Antwerp, Faculty of Business and Economics.
    10. Bielecki, Andre & Albers, Sönke & Mantrala, Murali, 2012. "Salesperson Efficiency Benchmarking Using Sales Response Data: Who is Working Hard and Working Smart?," EconStor Preprints 57427, ZBW - Leibniz Information Centre for Economics.
    11. Jan Mattsson & Helge Helmersson & Katarina Stetler, 2016. "Motivation Fatigue As A Threat To Innovation: Bypassing The Productivity Dilemma In R&D By Cyclic Production," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(02), pages 1-23, February.
    12. Berg, Pekka & Leinonen, Mikko & Leivo, Virpi & Pihlajamaa, Jussi, 2002. "Assessment of quality and maturity level of R&D," International Journal of Production Economics, Elsevier, vol. 78(1), pages 29-35, July.
    13. Giorgia Nigri & Mara Del Baldo, 2018. "Sustainability Reporting and Performance Measurement Systems: How do Small- and Medium-Sized Benefit Corporations Manage Integration?," Sustainability, MDPI, vol. 10(12), pages 1-17, November.

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