Some universities and colleges in the US are now being funded according to a productivity-based formula. Does this make sense?
What is the productivity of a university? how is it measured? Number of degrees per $1,000 of investment?
Get it wrong - and universities will play the measurement game - making the figures move in the direction which benefits them financially even if this is not the most appropriate measure.
This is not to suggests that productivity is not important - after all universities are spending public money - and should be held accountable for it.
But if we get the measure wrong - we get the wrong result. Universities might benefit - but society won't. So we need a good, healthy debate on what the measure - or measures - should be.
The same is true in your business. If you measure the wrong things, you get the wrong behaviours - and the wrong results.
What is the productivity of a university? how is it measured? Number of degrees per $1,000 of investment?
Get it wrong - and universities will play the measurement game - making the figures move in the direction which benefits them financially even if this is not the most appropriate measure.
This is not to suggests that productivity is not important - after all universities are spending public money - and should be held accountable for it.
But if we get the measure wrong - we get the wrong result. Universities might benefit - but society won't. So we need a good, healthy debate on what the measure - or measures - should be.
The same is true in your business. If you measure the wrong things, you get the wrong behaviours - and the wrong results.
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