Another example. I know of a company where they measured
the "performance" of their support section by how quickly
they closed open tickets. As you might expect, the
support folks began boosting their performance rating
simply by closing a ticket ... then opening a new one!
Now, this annoyed the customer (who was told to start
referring to a new ticket for the same problem) but,
hey, they got their bonus for improved performance!
The lesson here is that metrics become unreliable as soon
as they are used as a basis for reward/punishment.
Perhaps the best way to measure performance is from
outside the team: for example, the performance
of a support section is perhaps best measured by asking
the customers how satisfied they are.
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