Ten Lessons from the Field
All of the metrics explored have taught us important lessons about performance metrics.
Metrics should be “credible,” “relevant,” and “legitimate.”
Metrics should actually measure the thing that you want them to.
Performance metrics should be external metrics, not internal ones.
Before you generate performance metrics you must know what the purpose of the firm is (and whether it is public or private).
Performance metrics that are benchmarks might not actually measure performance.
The results of performance metrics might be counter intuitive, so it will take a lot to get people (especially managers) on board.
There should be industry-wide standards for the generation of performance metrics (perhaps an organization should be started to help industries establish performance metrics standards).
Performance metrics can come under immense political pressure.
High data protection standards should be used to ensure the integrity of the performance metrics at hand.
Finally, we should not forget that people’s psychology plays a role in how they answer questions that might be a part of performance metrics.
If all of the these lessons are adhered to, human resources performance metrics will mean a lot more and will have the potential to help the industry a lot more, since metrics serve as a foundation for running a successful business.