How To Measure Anything
A review of the book How To Measure Anything
He cites the example of a time tracking system, whereby the actual time to complete an IT project was not materially different from the estimated initial estimate, yet it was the largest measurement in the organization and “it literally added no value since it didn’t reduce uncertainty after all.
To which I commented
n the absence of time tracking the actual investment is not known, so I would argue that the uncertainty is vast, and almost identical to risk since there is little upside and tremendous downside on IT projects in particular. The idea that the estimate was the same as the actual is an outlier as far as IT projects go.
The value of a time tracking system is to create accountability for everyone in the value chain, from the person delivering the service to the project manager to the owner and on to the client. Without feedback from the time tracking system it is not possible to know if a budget is being adhered to. In the case of retainer based services this can lead to dramatic overservicing of the client with little benefit to the service provider.
Heisenberg applies to management as well. The act of measuring influences what is being measured. With better information at hand, processes can be refined, quality can be improved or at least traded against additional investment, and everyone benefits.
