Avoiding 'target fixation'
Too much of a 'good thing' can be too much.Cycle time and work-in-process (WIP) inventories can go out of control when utilization of a resource approaches 100%.
By Dr. Thomas L. Landers -- Modern Materials Handling, 8/1/1998
A pilot dives his aircraft to deliver weapons to the target. Adrenaline flows and emotions begin to denominate. In devotion to duty and commitment to success, the pilot concentrates on the target. But, at a fatal point, it is too late to pull out. His aircraft becomes the weapon. The pilot will not live to fly another mission, a victim of target fixation.How does this air warfare scenario relate to system design and management? Measurement is an important part of change management for systems and processes. Improvement is the objective; measurement is just a tool to accomplish our objective.
Too often, the focus becomes the metrics rather than concentrating on the customer's needs; and there are too many instances of focusing on a single metric in the business world. Management neglects other important metrics and inadvertently reinforces non-productive behaviors. An example of what can go wrong is shown (sidebar) in the accompanying example of focusing on achieving 100% utilization of a resource.
One of my experiences illustrates the dangers of target fixation, or metrics mania. As a manufacturing engineer in the consumer products division of a high tech multinational corporation, one of my jobs was to negotiate inter-company transfer prices. The company was highly decentralized into profit centers, and a manager could show a higher quarterly profit by achieving a favorable transfer price. Managers expended a lot of time and creative energies in trying to beat one another out of profit numbers with no benefit to the company.
The business unit suffered many failures as a result of target fixation. I have often wondered how things would have turned out if the managers had directed all that energy at the marketplace.
To avoid target fixation, try adopting the Total Quality Management approach. And try to follow these guidelines so that the metrics you select and apply have these qualities:
Balanced. Select at least one metric from each of the following categories to monitor your process:
- Financial
- Service quality
- Cycle time
- Resource productivity
Integrated. Measure business processes across all phases of the value chain rather than just within organizational functions.
Manageable. Monitor a few metrics which are simple and complementary and which are clearly understandable by everyone in the value chain.
Robust. Measure both the level and the variability of performance.
Relevant. Analyze your chosen metrics, do root-cause analysis, and continuously improve.
Performance metrics are helpful in justifying the change project and in evaluating its success. Just avoid target fixation.
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