Management By Metrics (MBMs)
Management By Objectives or popularly known as MBOs are a very efficient tool for driving and managing the performance of executives as well as employees. MBOs by their inherent definition work on the concept of defining a set of objectives and then eventual KPIs needed to achieve those objectives. Action Plans are then drawn by the employees to drive the KPIs.
Though this works really well, what happens in most organizations is, due to the inherent nature of the MBOs and KPIs needed to track, the entire process of MBOs sometimes become too subjective eventually making the entire Performance Management process a bit more circumspect, people driven. In some cases, given the manual nature of the KPIs, the way the KPIs are presented could drive the narrative than the KPI itself.
While MBOs are a great tool in defining the end objective, MBOs without a comprehensive tracking mechanism would still make it circumspect and in some cases does not help in the overall performance of the company. We at QuarkCube strongly believe that MBOs need to be augmented with a supplemental process called MBM or Management By Metrics. MBMs are loosely tied to the concept of Balanced Scorecard where every metric is associated to the following key area impacts
2. Organizational Growth
4. Personal Growth
In MBM, every metric while being associated to the above areas would then be layered on to our 4Ws
1. What Happened
2. What is Happening
3. What needs to Happen
4. What could Happen
Idea behind MBM is to augment the MBOs and then bring in some sense of Order to the Chaos. The challenge with MBM though is companies will need a solid foundational platform to drive the 4Ws and then also define & track the KPIs across the 4 areas above. QuarkCube is rightly positioned to bring in both providing a technology bridge to the entire area of Employee Performance Management.