It's widely believed that data and metrics improve performance — that if we can’t measure it, we can’t manage it. Often however, the more we measure, the less we innovate. Why?

1. When we’re judged on metrics we focus on the measured tasks at the expense of others. This can narrow our focus to familiar methods that yield incremental improvements, rather than trying fresh new ideas.

2. Metrics can encourage short-termism by leading us to focus on activities that yield immediate results. True innovation is messy, time consuming and often doesn’t show results straight away, so gets discouraged by proxy.

3. Metrics can discourage risk-taking. When we fetishise measurement we’re more likely to play it safe than do something bold that risks failure.

4. Implementing and interpreting metrics absorbs time and energy, distracting people from more creative activities.

5. Since metrics can be gamed, businesses impose tighter rules to stop this happening. The net result is less and less freedom to try things out.

Measurement done well undoubtedly creates insights that improve performance. But done badly it achieves the opposite, stifling the activities it hopes to promote.

Tread carefully. The relationship between measurement and performance is surprisingly tricky to get right.

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