Question the effectiveness of what has traditionally been measured?

Many companies collect a great deal of data that end up in reports which no one reads. No one reads the reports because the data are not needed in making day-to-day decisions.

An organization should, however, have a specific set of criteria it uses in selecting variables to measure and include this in its performance data base. At least one of these criteria should indicate that the dimension or index being used is there because of its importance to customers.

A steel company, for example, had the quality practice of measuring the amount of dirt and oil present on finished and rolled steel. However, it turned out that its customers did not care because they in any case washed the delivered steel. Why? Because the steel got dirty en route!

Lesson: Question the effectiveness of what is being measured?