You Can’t Manage What You Can’t Measure

Clear expectations are the starting point for effective performance. If we know what is expected and we commit to comply with those expectations, our performance will meet the standards of the one who set the expectations. If we do not know the expectations or the expectations are unclear, even if we wanted to comply, we would not be able to meet them. If expectations are not clear, how can performance against those expectations be effectively or accurately measured? Clear expectations are those that can be measured.

Most effective leaders spend considerable time thinking carefully about how, what and when to communicate. This is also true when setting and communicating expectations. Horst Schulze, the co-founder of the Ritz Carlton hotel chain is quoted as saying, “When someone makes the same mistake more than once, it is not a performance problem, it is problem with a procedure.” What he means is that if the performance expectation or procedure is not crystal clear, it might cause people to make their interpretations which can lead to mistakes. Mistakes cost time and money which impacts our bottom line.

Quality focused organizations have adopted ISO standards and six sigma quality principles. In a manufacturing setting, these principles or operating standards are nothing more than setting clear expectations of performance for both equipment and personnel. The result has been that customers can trust the components or finished goods have been produced in accordance with strict standards. When this occurs, trust in the relationship between the manufacturer and the customer increases. Generally, with increased trust in the product or process comes increased business. The corollary to this is also quite true – when trust is decreased (because of expectations that are not delivered) less business is the outcome. The customer often seeks alternative suppliers or providers.

Additionally, clear expectations can reduce the need for rework or rechecking, all of which saves time and money, and results in higher profit margins.  Generating higher profit margins means more can be invested in research, training and development of staff and leaders, giving back to God’s Kingdom work and other worthy purposes. It just makes so much sense to set clear expectations.

So, what can you do to set clear expectations?  Here are a few suggestions:
1.    Prepare clear and measurable performance expectations for every key task of the positions reporting directly to you and ask the person performing the job to comment on the expectations.
2.    If needed, restate key tasks in a manner that each can have at least one measurable performance expectation attached to it.  If you can not measure it, you can not manage it or expect a performance standard to be achieved.
3.    Develop or update the core values; ensure all staff members are fully aware of them.
4.    Evaluate performance expectations, policies, procedures and handbooks against the organization’s core values to ensure consistency.
5.    Look for and correct opportunities that staff might have to interpret expectations, policies or procedures.

What ideas do you have that have worked in your organization?