"If you don't measure it, you can't manage it," said Edward Deming, the father

1. "If you don't measure it, you can't manage it," said Edward Deming, the father of quality management.

2. 'Goal setting', 'organization', 'measurement', 'motivation', 'human resource development' are the basic activities of managers that Peter Drucker said. I think measurement is the most important of these. If it cannot be measured, goal setting, organization, motivation, and human resource development are all difficult to implement properly, and even if it is implemented, it is difficult to continue because objectivity and fairness cannot be secured.

3. Peter Drucker probably realized the importance of measurement by watching the generals of General Motors work. While the heads of other companies moved their subordinates like gangsters, the heads of GM led the organization through performance measurement. Number 4 is what Drucker described in relation to 'The Reality of Management'. In the Korean version, the foreman was translated as the head.

4. "General Motors puts a lot of emphasis on applying objective measures of base price and cost analysis to the head above all else. The head sets his department's cost and output efficiency budget every year, which are the three main criteria for production efficiency. An hour's output per person or per dollar of wage (if different skill levels of labor are used together). Per dollar of capital invested in the machine. Loss of raw materials and tools due to damage, work errors, etc. Budget, and how well the head fits this show both the head's ability to lead and the ability of a mechanic. Because if either side lacks the ability, it immediately turns out to be low efficiency."

5. At No. 4, GM's representative at the time was Alfred Sloan, who was praised as the father of a modern company. Under Sloan's leadership, GM of that era turned around on the brink of bankruptcy, beating Ford and becoming the automobile industry's strongest. It is not an exaggeration to say that measurement-based management was demonstrated in practice by the father of a company, the father of quality emphasized its importance, and the father of business administration spread it widely.

6. Everyone knows that measurement is important, but not everyone can measure it. It is a common reality to argue that measurement is done by quantifying qualitative factors and not knowing that the structure must be changed in order to measure.

7. To be measurable, you must create a measurable structure first. Finding and optimally organizing the smallest unit that can create value is the key. In Sloan's time, it was a business unit. Drucker used to talk about a team that was a smaller unit than a business unit.

8. This article alone will make it difficult to comprehend what No. 7 means. In other words, an accounting unit is the smallest unit that can produce value. For instance, companies before Sloan only had one accounting unit. (Of course, most companies still have one accounting unit.) Sloan was the first person to divide an accounting unit into a divisional unit. Each division was treated as an independent company, and performance was measured in terms of sales and profits for each division. However, this is a very old story. Small teams can now become accounting units because technological advances have significantly increased productivity.

9. If the prerequisite for measurement is structure, the basic is knowledge. As Drucker said in No. 4, both the leader's ability and the mechanic's ability, that is, the practitioner's ability are necessary. The ability of practitioners does not mean that they should do better in practice than practitioners. Rather, managers should be able to hire people who are better than themselves. Here, the ability of practitioners means 'knowing well'. You need to know the practice well, but you can build a structure, process, and system suitable for it.

10. You can't do number 9 by ordering someone to do it. The manager himself has to do it. If you leave number 9 to someone, the person in charge will inevitably change several times, and the manager himself will not be able to properly understand the mechanism of the company he manages.

11. Managers do not have to be good at practical work. However, it is essential to be familiar with the practice. In this regard, I think Elon Musk's attitude deserves to be imitated. When Elon first talked about the space industry, all space industry experts laughed at him. Elon taught himself rocket engineering by reading and has grown to the point where he can talk to engineers. Elon's knowledge of rocket engineering was necessary to properly manage SpaceX.

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