Metrics Implementation is a Journey and not a Destination

“Brushing the teeth” is a part and parcel of our life. It is very interesting to understand how all internalize this simple process. Unfortunately, we cannot remember the time when we got into the habit of “Brushing the teeth”. Let us take an example of a child being raised. I think we can learn a lot of sound management principles from a house wife or a mother. Once the child starts growing, mother makes it a point to help him brush the teeth daily. In the early stage the child resists; he eats the paste; does not clean his mouth properly etc. The mother diligently continues the process as she knows that the child needs to first pick up the habit of brushing the teeth daily. Any habit formation takes time. Once the habit is cultivated, the child will start brushing everyday on his own. This is the time to teach him about the correct way of brushing. The mother does it with a lot of patience. We all know how much effort goes behind developing a sound habit of brushing the teeth properly. Today we find this task to be very small and simple. However, an enormous amount of effort, patience and sincerity was put in to make this happen.

Software industry is relatively young. The industry is being raised. The practices are being internalized. Some companies in the industry are ahead of the others. But the fact is that this is a young industry. Raising and maturing this industry will require a very similar kind of patience like a mother in above case. We, sometimes ignore the basic facts of life. I very strongly believe that raising a child in a relatively young industry will need a long term focus; commitment, dedication and goal orientation on the part of management (the mother). Metrics implementation is one such habit like “Brushing the teeth”. It is a journey and not a destination.

I think the management needs to have a clarity of vision in Metrics Implementation. It needs to understand the long term goal, hiccups in the journey and its commitment towards its fulfillment. There are factors which certainly accelerate or retard the pace of implementation. I will touch upon them in subsequent paragraph. Let us look at the best practice in Metrics Implementation. The Management needs to decide a broader set of metrics which will meet the needs of various stake holders like Customers, Management (Proxy for Owners) & Employees. In the beginning of the program one may start off with customers because the existence of the company is due to the presence of the “Customers”. In the broader set I shall refer this as “Global Metrics for an Organization”. This needs to be customized to match the specific goals of the customer.

Let us look at the flow below which describes the metrics implementation process for meeting the needs of customers.














This process continues like a journey. First we need to get into the habit like a child gets into habit of brushing. Once that is done then we can talk about tweaking, mapping with goal and measuring (Proper way of brushing).

Finance and accounting is a more matured discipline. Therefore, the metrics related to ownership are normally found in most of the companies. These could be metrics like Gross Margin, EBITDA etc. However there are challenges in aligning these with Operative Managers. As a part of Metrics program, these should be aligned appropriately with other metrics. The purpose is to simplify so that action can be initiated at operating levels. For example Resource Mix Index may be proxy for Gross Profit and the same is easily controllable at Project Manager Level. One should look at three to four goals for Internal success (Internal Success Factors). We should work to define the ISFs for each engagement and map metrics to measure them accordingly.

Employees are very important elements in Software industry. They are our assets. They go home after finishing their daily tasks. Management has to ensure that they comeback the next day. This is a more complex process to implement. We will continue with our discussion without looking at this aspect. I think it is equally important to develop and manage employee related metrics using the framework discussed in foregoing paragraphs.

As one progresses on their journey; one can choose to improve the quality of these habits appropriately. The next step could be to bring alignment in three dimensions of metrics viz. Customer, Ownership and Employees.

Lastly, the child grows up in an environment which can be considered as germination of a seed in fertile soil (Here Environment is referred to soil). This results in a healthy plant. Similarly metrics program gets affected by some factors like:

1. Organizational Alignment & Focus: A company having a consistent program will have quicker success in the Metrics journey. It is very important to have Management focus, commitment, consistency and long term orientation.
2. Growth of Business: Nothing succeeds like success. I know the price of success: dedication, hard work, and an unremitting devotion to the things you want to see happen (Frank Lloyd Wright). One will see much better results with same efforts in a growing company.
In declining business, de-motivation at all levels; Cost pressure and other associated ills retard the pace of the implementation.
3. Education of the key participants: I believe this has to be top down.

There may be many more factors. But I consider the above 3 factors as important ones.

Metrics Implementation is a Journey. It is like raising a child. One has to have patience, interest in child and focus to make him an invaluable citizen in the long run. Let us not forget Environment which plays an important role in the growth of the child. One may not be able to control the environment. However, one should focus on areas under one’s control. You will definitely get the Results but it may be at a slower pace. William Shakespeare has rightly said that “Though patience be a tired mare, yet she will plod”.