If you can't measure it, you can't manage it. But if you measure everything, you still can't manage it. You need to find the optimal 'goldilocks' point.

I am not sure who quoted that you can't manage what you can't measure, but it definitely is a concept that is deeply embedded in business. And to a large extent I agree with the idea. In fact given my reliance on "data based decision making" rather than relying on opinions - it is important to me that we always measure everything we do - so we can understand if what we are doing is driving the desired result. In fact, in a subsequent post I want to challenge marketers who struggle to understand how every dollar spent on marketing can be measured for a return. That's for another day.

Today I want to focus on not being able to manage something if you can't or don't measure it. In my observations there is a danger here of going overboard - when everything starts to get measured. Every little thing - often because you can - managers start to spend time on irrelevant areas. I think there is an optimal "goldilocks" point to the number of things that you should measure and at that optimal point you drive the highest level of effectiveness to your ability to manage. But beyond that optimal point you quickly hit the 'law of diminishing returns' - where too much data on irrelevant items actually starts to distract you, lead you down useless discussions, and actually reduces your ability to manage effectively.

Too much measuring, leads to too much data, which distracts and confuses managers, leading to reduced management effectiveness.

So whats the solution? In my opinion, start with identifying what you will measure to determine the success of something. Ensure those things are measurable. Measure them and use the data to determine insights - and use those insights to optimize what you are doing. Adjust your approach. Tweak something. This optimization is more valuable than wasting your time digesting data that just takes you off your path to success.