The Hawthorne Effect: How Measuring Metrics Can Propel Your Business Forward
Each week, my daughter and I have a competition to see who can get the most steps by the end of the week. I would like to say it's non-competitive, but winning is serious business to my 13-year-old! It’s fascinating to see how this simple act of measuring our steps motivates us to move more. This phenomenon is known as the 'Hawthorne Effect'—the idea that observation or measurement itself can lead to improvement.
For founders and business owners, this concept is crucial. Tracking the right metrics can drive significant improvements and propel your business forward. If you're navigating the complexities of which metrics to track or you're in the early stages of implementing metrics, here are some questions to consider:
Does this metric help me make informed business decisions?
Who on the team is responsible for reviewing this metric?
Who on the team can provide valuable context to this metric?
How will this metric be communicated within the team?
If you're still unsure, give the business a short time frame to test the metrics and see if they were as useful as anticipated, then revise as needed.
What single metric do you track that has transformed your business? Your insights could inspire others—share them below!
