Creating a Culture of Variance Explanation
This series of posts has identified numerous leadership traps in the form of common misuses or misunderstandings of metrics. In this post I’d like to touch on the power that can be harnessed within your teams by avoiding these traps and creating a culture of variance explanation.
Let’s start by thinking about how performance review meetings typically work. Imagine a group of people talking about the performance of a given process or function. On a big screen is a hot mess of a metrics dashboard. Very few (if any) people understand how the metrics are calculated, if or how they relate to each other, or if they actually measure the performance of the process against its goals.
People assume they know what a metric means simply from its name.