article thumbnail

Using the Right Performance Metrics: Watch out for P&Ls

Kates Kesler

Metrics serve as a powerful motivator and unfortunately, are often perfectly designed to drive sub-optimal results. For a simple comparison, consider this sports team analogy. In team sports, measuring vital, non-point metrics and de-emphasizing individual metrics is not a new concept.

Metrics 100
article thumbnail

Tesla Shows How Traditional Business Metrics Are Outdated

Harvard Business

He wanted to build a sports car, then build a more affordable car with zero emissions. At the core of the confusion over a company like Tesla is that traditional business metrics are outdated and can create overconfidence or underestimation. We don’t need to throw out all classic business metrics. more units than Tesla.

Metrics 71
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Socialism May Work in Sports but Not in Business

Martinka Consulting

In the NFL, and other pro sports, the league has a salary cap that teams must adhere to. Good metrics make a difference. Banks are in business to be paid back and have their own metrics, which borrowers must meet or exceed. The post Socialism May Work in Sports but Not in Business appeared first on Martinka Consulting.

Sports 40
article thumbnail

There Are Two Types of Performance — but Most Organizations Only Focus on One

Harvard Business

Every step of the process was measured, and real-time metrics were easily accessible. Metrics emphasized speed. We asked the management team if we could eliminate the narrow metrics and bonuses, which rewarded only tactical performance, and focus more on the adaptive. Previously, working in the call center was a solo sport.

Metrics 134
article thumbnail

10 Years of Data on Baseball Teams Shows When Pay Transparency Backfires

Harvard Business

While sports are different from other industries in many respects, baseball makes a good test case for this kind of study for several reasons. And third, MLB players’ compensation is less regulated than in other sports, so we can more readily observe the impact of pay dispersion.).

Data 108
article thumbnail

In Praise of Extreme Moderation

Harvard Business

They take up a sport to find some balance in their lives — and get caught up becoming marathoners. Extremism is becoming the norm not only in our professional lives but increasingly in our personal lives as well, from politics and parenting to food and fitness. Go to bed late at your peril.

article thumbnail

When You Agree to a Networking Meeting But Don’t Know What You’re Going to Talk About

Harvard Business

For instance, if they love sports, perhaps you can invite them to join you for a game in the future; if they want to meet more people in the consulting industry, you could loop back next month with an offer to join you and a friend who’s a consultant for lunch.

Meeting 130