Presentation about my talk in 2nd Product School Jakarta monthly meet up. I tell a story about the beginning of scientific method used in management and end it with the latest trend of how to use metric to achieve goal. This is very broad topic, but worth to explore the origin of metrics and how it evolve overtime. Broader discussion would be in Organisational Design of achieving goals.

1. A Brief History of Metrics
How it evolve over time
Ifnu Bima @ Product School event
jan, 30tth 2019

2. Frederick Winslow Taylor
1

3. The Principle of Scientific
management

4. “In the past man has been first; int the
future system must be first
We can see our forests vanishing, our water-powers
going to waste, our soil being carried by floods into the
sea; and the end of our coal and our iron is in sight. But
our larger wastes of human effort, which go on every
day through such of our acts as are blundering, ill-
directed, or inefficient, and which Mr. Roosevelt refers
to as a lack of "national efficiency," are less visible, less
tangible, and are but vaguely appreciated.

5. Four Principle
✘ Replacing the rule of thumb by scientific methods
✘ Selecting, training, teaching and develop the workman
✘ Division of work and responsibility
✘ Cooperation between management and workers
Principles to manage resources efficiently using scientific method, one
of the method he use is “time and motion study”

6. Management by Objective
✘ Top Down approach of goal setting
✘ Set corporate objective (financial)
✘ Employee objective
✘ Performance monitor
✘ Evaluate (PA)
✘ Reward & Punishment
Formulated by Management Guru Peter
Drucker
http://degreehelpline.blogspot.com/2013/09/management-by-objective.html

7. Balanced Scorecard
✘ Putting mission, vision and goal
setting in one sheet
✘ Strategy execution tools
✘ Incorporate Learning and Growth
into evaluation
Paper by Harvard professor Robert
Kaplan and David Norton
https://www.balancedscorecard.org/BSC-Basics/About-the-Balanced-Scorecard

8. https://www.intrafocus.com/balanced-scorecard/

9. Criticism of Taylorism
Division of Work
Toxic to teamwork
Every team only care about
their own number
Narrow skill and limited
competency
Shrink human value as number
Reward and Punishment based
on number
Obsession to number bring
relationship to transactional
Middle management
Does not add value
Not my problem mentality
Manager think, others do

10. Edwards Deming

11. Out of Crisis

12. “Quality is pride of workmanship
Quality is everyone’s responsibility
In God we trust; all others bring data
Without data, you’re just another person with an opinion
A Bad system will beat a good person every time

13. ✘ 14 principle on 4 section
✘ Several notable terms
○ Continuous improvement (Kaizen)
○ Eliminate waste
○ Pull system (Kanban)
○ Stop to fix problem (andon), get quality right the first time
○ Visual control
○ Learning and Growth
Toyota Way

14. ✘ Toyota Way
✘ Total Quality Management (TQM), Statistical Process Control (SPC)
✘ Lean Manufacturing
✘ Agile
✘ Lean Startup
✘ Lean UX
✘ Lean Engineering
Quality Movement

15. Criticism of Quality Movement
More of Way of Life instead of
achieving any goals
Better way of life
Work life balance
Sustainable pace
Craftmanship
Lack of alignment to business
goal
Focus on competency
People over process
Compromised Innovation
Decision by consensus
Focusing on the problem

16. John Doerr, Andrew S. Grove
16

17. Measure What Matters
High output management

18. “We must realize -- and act on the realization -- that if we try
to focus on everything, we focus on nothing
An effective goal-setting system starts with disciplined thinking
at the top, with leaders who invest the time and energy to
choose what counts
When people have conflicting priorities or unclear, meaningless,
or arbitrarily shifting goals, they become frustrated, cynical and
demotivated

19. ✘ JFK Moon Challenge: “Before this decade is out, of landing a man on
the moon and returning him safely to the earth”
✘ SpaceX: “Making life multiplanetary”
✘ Tesla: “accelerating the advent of sustainable production and
consumption of energy”
✘ Jokowi: “Kapanpun infrastruktur dimulai, selesai 2019” :D
BHAG
Big Hairy Audacious Goals

20. NorthStar metrics
Single metrics that best capture the core value that your product
delivers to customers
✘ Airbnb - nights booked (value for hosts and guests every time a night is booked)
✘ Facebook - Daily Active Users (every time new users are on the FB platform it becomes more
valuable to the other users)
✘ Gojek - Complete Rides
✘ Blibli/E-commerce - GMV (Gross Merchandise Volume)
✘ BBM - Daily Active User (DAU) / Monthly Active User (MAU)

21. OKR (Objective Key Result)
https://www.perdoo.com/blog/okr-crash-course/

22. Good Objective(O) Key Result (KR)

23. OKR Done Right

24. OKR Done Right
High Alignment
High Autonomy,
with Northstar
metrics as
Guidance
Henrik Kniberg/ Spotify - Aligned Autonomy

25. Thank You