They’re simple. Memorable. Effective. Not controversial. And far easier said than done.
This is our first blog in the Words to Live By series, where we explore phrases and philosophies we’ve seen change behavior inside PE-backed companies. From our experience, when teams truly live by them, execution improves and outcomes follow.
That Which Is Measured Improves
While these particular words from Karl Pearson are etched into my operating vocabulary, if you prefer Peter Drucker’s “what gets measured gets managed,” we can still be friends. To me, the point remains the same.
The act of measuring alone—before any change, new incentive, or new initiative—changes behavior. Conversations get to the point faster. The fog begins to lift. Priorities get clearer. And excuses get harder to find.
But measurement isn’t the goal. So, what’s the magic?
Measurement is the enabler.
With measurement, you can establish benchmarks. With benchmarks, you can begin to identify trends and patterns by cohort, segment, or channel. As those patterns emerge, you can set data-based targets. And targets allow you to judge performance against a shared and clearly understood set of expectations.
Measurement leads to targets, and targets become a forcing function. You can see what “good” looks like, where you’re falling behind, and whether effort is translating into outcomes. With targets in place, you can measure weekly pacing within a given period (e.g. month or quarter) and quickly spot deviations from plan.
Ahead of pace? Step on the gas.
Behind pace? Dig in, diagnose the gap, and put an immediate remediation plan in place.
Targets can then be communicated clearly and consistently. Context can be provided around the “why” behind them, and the drumbeat of repetition can begin. From weekly 1:1s to all-hands meetings, focusing the organization on a small set of well-defined, tracked targets can be transformational.
Over time, changes to strategy, process, org structure, and incentive plans can reinforce the priorities. But none of that is required to start.
Pick a priority. Measure it. Make it clear it matters. And be explicit about what you’ll be watching.
That alone can change behavior.