We all know that you get what you measure. When we experience a dysfunctional organization, we know that we should be suspicious of the objectives that managers and employees are motivated to achieve. In fact, based on the experiences we’re having, we can often guess at the firm’s compensation structure and/or culture. Here’s one example that is top of mind for me: Someone hit my car when it was parked. Their insurer was GEICO. Within 30 minutes of the accident, GEICO called me, told me they were taking responsibility and arranged for appraisal and repair. GEICO is obviously optimizing rapid claim settlement for “no brainer” claims.
U.S. Healthcare Industry: Focused on Productivity and Quality Metrics
There’s been a lot of discussion about how broken our healthcare system is. We pay for transactions, not outcomes. Physicians are measured on their “productivity,” e.g., how many patients can you see (and bill for) in a day? Hospital staff are rewarded for getting patients out of beds as quickly as possible, but fined if that patient winds up back in the hospital within 3 weeks.