Why chasing KPIs can be bad for business
Use metrics as a substitute for thought rather than as an aid to hard thinking and there's a high chance it'll bring you undone.
Ross Gittins is economics editor of the SMH and an economic columnist for The Age. His books include Gittins' Guide to Economics, Gittinomics and The Happy Economist.
Use metrics as a substitute for thought rather than as an aid to hard thinking and there's a high chance it'll bring you undone.
So, the Australian Bureau of Statistics told us this week, the rate of unemployment fell a click to 5.6 per cent in July. Trouble is, most people know the official unemployment rate understates the extent of the problem.
There's been a sound economic justification – the need to restore our industries' international price competitiveness - for our weak wage growth over the past three or four years.
Since we've all got so excited about the weak growth in wages, let me ask you a personal question: How much do you know about how wages are set?
When Boris Johnson, Britain's Foreign Minister, visited Oz lately, he implied that our record 26-year run of uninterrupted economic growth was owed largely to the good fortune of our decade-long resources boom.
One problem to remember before we work ourselves into a complete tizz over the War on Wages.
Do you realise the Reserve Bank board hasn't changed Australia's official interest rate from 1.5 per cent for almost a year? But that hasn't stopped people in the financial markets from speculating furiously about whether rates are about to go down – or go up.
Behind the demise of the pseudo-economic belief that what's good for big business is good for the economy.
Despite the scare stories about the rise of the "gig economy", full-time jobs growth is surging.
The more we enhance our natural capital and our human capital, the better placed we're likely to be.
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