KQ Article

All banks and credit unions depend on measurement. But metrics can get messy in a hurry. It is so easy to fixate on numbers, even when we know they are only part of the picture. Further complicating matters, it isn’t always obvious which metrics should be scrutinized and which should be dismissed.

Our current issue of The Deluxe Knowledge Quarterly tackles the concept of measurement from multiple perspectives — the rights and wrongs, the goods and bads, maybe even the ugly.

There is an old adage that says, “What gets measured gets done.” This is a sound idea that often works in our favor, but it can also lead to a barrage of problems. For example, if you focus too heavily on call handle time, are you encouraging your associates to hang up on their customers? If your only incentive in the branch is cross-sell ratio, does it motivate employees to push products at the expense of the customer experience?

As you can see, the tradeoffs inherent to measurement are tricky. Which is why we’ve devoted this entire issue to the subject.

In these pages, Seth Godin explains why we should resist “easy” metrics. Dan Ariely helps bankers help their customers accurately measure their own thrift. We explain why even the most sophisticated measurement tools can never replace managers. And Will Marré keeps the whole discussion in perspective, reminding us to respect both the power and the limitations of metrics. Many things that count the most cannot be counted at all.

These are just some of the many informative articles on measurement that you’ll discover ahead. I hope you appreciate the different perspectives as you read on.


Tom Morefield
President, Deluxe Financial Services

_{© 2010 Tom Morefield}