Actions That Are Tracked and Monitored Are Likely to Be Accomplished

Actions That Are Tracked and Monitored Are Likely to Be Accomplished

On a Saturday, readers of Branded's newsletter received insights from management theory and its application in the restaurant industry. The discussion stemmed from two quotes attributed to Peter Drucker - "What gets measured gets done" and "Winners want to be measured."

However, there is no definitive evidence that Drucker originated the first quote. It is believed to have originated in a paper published by V.F. Ridgway in 1956, titled "Dysfunctional Consequences of Performance Measurements," in which Ridgway cautioned against using quantitative measures too liberally. Simon Caulkin summarized the paper, stating that what gets measured gets managed, even if it's not worth measuring and could harm the organization.

Despite this, Drucker emphasized the importance of measuring the performance of knowledge workers, as their roles cannot be quantified like manual labor. In his book, "The Effective Executive: The Definitive Guide to Getting the Right Things Done," Drucker recognized the need for metrics to assess performance across all industries but felt that using the wrong measures could lead to errors in evaluation and management.

These ideas were reflective of the ongoing debate at the Citi Emerging Restaurant Forum, where industry professionals highlighted the importance of adapting the phrase "What gets measured gets done" to fit the unique needs of the restaurant industry. As a people-focused industry requiring four times the human capital to generate $1 million in sales, measuring and managing workforce performance is crucial to success.

Anne-Laure Le Cuniff, an expert in management, provided some guidance on how to effectively measure performance in a way that respects the complexities of people-centric businesses. This includes adopting a people-first management approach, where numbers should not replace human-to-human conversations. Instead, managers should reflect on the impact of their current measurement systems on their thinking, work, incentives, and potential second-order consequences.

Moreover, Le Cuniff encouraged accepting that some performance indicators, such as innovation, creativity, enthusiasm, and expertise, are difficult to quantify accurately. While indirect measures can be used, it is essential not to confuse incomplete or flawed measures with the actual factors.

In conclusion, the restaurant industry must embrace measurement and management theory while striking a balance between using the right metrics to measure workforce performance and maintaining a people-first approach. This combination of effective measurement and a commitment to their people will help restaurants adapt to a rapidly changing environment and achieve sustainable success.

1. The hospitality industry, particularly the restaurant sector, is urged to apply leadership principles to measure and manage workforce performance, as highlighted in Branded's newsletter discussion on management theory.
2. In the realm of podcasts, episodes exploring the application of Drucker's principles in the restaurant tech sector could offer insights on how metrics are crucial for business success.
3. By adopting a people-first management approach, portfolio companies in the lifestyle and entertainment sectors could benefit from the wisdom of management experts like Anne-LeCuniff.
4. General news platforms might delve into the ongoing debate at industry events like the Citi Emerging Restaurant Forum, highlighting the unique challenges in measuring performance in people-centric businesses.
5. In the world of finance, investors may find it advantageous to understand the intricacies of measuring and managing workforce performance in restaurant tech companies for informed decision-making.
6. Education-and-self-development channels could provide courses on Drucker's management principles, emphasizing the importance of balancing the use of metrics with a people-first approach.
7. Sports teams might also draw parallels between their performance management strategies and those in the restaurant industry, seeking to improve their operations and achievements through similar methodologies.

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