A Summary and Critical Analysis: “the 7 Deadly Sins of Performance Measurement and How to Avoid Them”

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A Summary and Critical Analysis: “The 7 Deadly Sins of Performance
Measurement and How to Avoid Them”
Doris Willis
Ottawa University May7, 2016
Productions-Operations Management – OAD 30013

Review: Hammer, M. (2007). “THE 7 DEADLY Sins OF PERFORMANCE MEASUREMENT [and How to Avoid Them],” MIT Sloan Management Review, 48(3), 19-28. Business managers are responsible designing and using metrics to track and improve operating performance to ensure customers are satisfied, productivity increases, and to boost sales. Operational performance measurement is one of the toughest problems facing many organizations nowadays. “The 7 Deadly Sins of Performance Measurement and How to Avoid Them” by Michael Hammer seeks to answer why companies fall target to recurring mistakes when using metrics. Ultimately, this article documents and evaluates seven prevalent mistakes exploited and how each improbity circumvents performance management and how to elude them.
Summary
The article centers on interviews with various executives. The consensus is managers’ do not use metrics effectively; they measure either too much or too little or the wrong things. Numerous companies implement metrics without giving any thought to the consequences of these metrics. He notes many of the operational metrics used by businesses make little or no sense. Hammer spells out the general dissatisfaction managers’ feel with metrics. Hammer outlines two routes that will ensure useful performance measurements for staying on track. First, put emphasis on end-to-end business processes and all cross-organizational activity structures that create customer value. Second, provide the right metrics to use by knowing what is measurable. In keeping these essential rules, one can avoid these seven deadly mistakes: Vanity, Provincialism, Narcissism, Laziness, Pettiness, Inanity,…...

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