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DarrenDaily On-Demand

The Grave Danger of Misguided Metrics

DarrenDaily On-Demand

Darren Hardy LLC

Business, Careers, Entrepreneurship

4.91.8K Ratings

🗓️ 2 July 2024

⏱️ 6 minutes

🧾️ Download transcript

Summary

Have you ever celebrated hitting your target, only to find it produced the wrong result? Darren Hardy shares how focusing on the wrong metrics can derail your success. Don't miss this eye-opening discussion on how to align your goals properly and avoid costly pitfalls! Get more personal mentoring from Darren each day.

Go to DarrenDaily at http://darrendaily.com/join to learn more.

Transcript

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0:00.0

Welcome to Darren Daily on demand, your most trusted resource to help you become better every day.

0:07.0

Here's your success mentor Darren Hardy.

0:10.0

Have you ever chased a number so hard that you lost sight of your real goal?

0:18.8

Have you ever celebrated the achievement of a metric, only later to discover that that was the very metric that caused

0:24.4

your failure?

0:25.4

Look, this happens a lot, and most don't realize it when it's happening, until it's too late,

0:31.0

and the results can be devastating but not you not anymore not after

0:36.3

our session here today here's the money line for your notes pull out your

0:40.3

dairn dairn daily journal write this down. When tracking a metric, when that metric becomes a goal,

0:46.9

it ceases to be a good metric.

0:49.5

It becomes a false incentive that then drives mismanagement. You end up optimizing for a proxy of reality

0:57.2

rather than reality itself. Imagine a thriving online clothing store, one renowned for its carefully selected in high quality

1:04.9

merchandise. They hire a marketing agency to bring them new customers. Inside the agency,

1:10.8

the account rep managing the account is constantly told by their boss to

1:14.4

increase the click-through rate on ads and banners which is a standard tracking

1:18.1

metric that should not become a goal. When they do raise the click-through rate, they're praised. They continue to tweak

1:25.8

and turn every digital knob and use every click gambit they can to continue to drive up that

1:30.4

click-through rate number. The agency owner reports the click-through rate and the new

1:35.0

customer success with great glee to the online store owner. It wasn't until several

1:40.6

months later when the online stores sales were down significantly and the

1:45.2

store's cash flow was blood-red that the store owner started to look more closely at his

1:50.4

financials. His returns had skyrocketed.

...

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