Beyond the Data: "Measure to Transform"

Dr. Edgar Lascano

In the organizational realm, the premise of measuring everything and at all levels is often a complex challenge. The key lies not in accumulating data but in capturing information that reveals answers, not just the components that make them up. This approach leads us to consider two crucial dimensions:
 

1. Relevance and Focus: There must be clarity in the objective of our measurements. Inspired by the theory of constraints and systems dynamics, we understand that individual efficiency does not guarantee overall success. In fact, an organization with highly efficient components can be globally ineffective. According to Goldratt (1984), all organizations face at least one constraint; identifying and managing this bottleneck is fundamental to total management capacity. The essential question then is, have you identified the most critical constraint in your environment?

The decision of where to focus improvement efforts is crucial. Identify your main constraint without indefinitely chasing new limitations. This approach will allow you to optimize your resources and establish a solid foundation for future improvements.

2. Measure Behavior, Not Essence:

The scientific revolution taught us the value of changing our research questions. Instead of asking "what is something," we have focused on "what does it do." This approach has unlocked unimaginable technological advances, from the creation of Mendeleev's periodic table to contemporary developments that seemed like fiction decades ago.

In developing the HAT Test, we focus on how people act economically, rather than trying to define their essence. This has allowed us to create a practical and relevant tool, avoiding the pitfalls of invasiveness and inefficiency.

Conclusion: Focus on measuring and managing what truly matters. The HAT Test offers a pragmatic and valuable perspective for understanding and improving economic behavior within organizations, moving away from approaches that try to decipher the intrinsic complexity of human personality. Measure the right things and transform your organization.

Dr. Edgar Lascano