Monday, August 19, 2013

Surviving Poor Management 4: Poor or Unrealistic Metrics

Wrong MeasurementsThis continues our series to help all of you working under poorly managed companies

Sean sold computer printers for a nationally recognized brand. His clients included the biggest companies in his sales district. He developed excellent relationships with his clients that generated great sales and revenues. His sales, however, created a problem for him. The company doubled his sales expectations and bonus structure. In addition, the company moved three of his largest accounts to a national sales desk. The combination of doubled sales expectations coupled with losing his biggest accounts, drove Sean to seek employment elsewhere.

Importance of Clear and Realistic Metrics

Management establishes how they will measure your productivity, efficiency, effectiveness, and quality.

  • They expect you to achieve the metrics they establish
  • Corporation’s stocks lose value ($) when the company does not meet projections
  • Good management uses nationally established benchmarks and prevailing metrics to establish their own metrics
  • Good companies tie raises and bonuses to performance metrics
  • Achievable standards and metrics motivate workers to perform well

Consequences of Poor or Unrealistic Metrics

Unfortunately, many companies only establish productivity standards. Then, they wonder why efficiency, effectiveness, or quality fail. Poor or unrealistic metrics can create several negative consequences:

  • Lower morale trying to achieve unachievable standards
  • Decreased motivation when salary raises fail to compensate adequately for significantly increased performance to achieve performance metrics
    • 2% pay increase for 15% increase in productivity
    • 2% pay increase for staff while management receives 14% raises
  • Lost respect and confidence in management for establishing poorly-planned metrics
  • Wasted time and effort pursuing metrics that lead in the wrong direction
  • Decreased quality or effectiveness as workers rush to meet unreasonable production goals

Compensating for Poor or Unrealistic Metrics

You may need to try several options to compensate for unrealistic metrics that affect your pay, performance appraisals, and promotions. Not all of them will work:

  • Research national benchmarks and share them with management
  • Create personal metrics that lead in the right direction
  • Accept metrics set by management and the consequences of failing to achieve them
  • Find a new job

Wednesday we highlight the consequences of disrespecting or undervaluing employees

This blog will improve as you submit comments, questions, and experiences. We will answer your questions in future blog posts. Please submit your comments and questions so we can answer them.

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