Adonis Diaries

Posts Tagged ‘Chase Fraud Prevention

Unmeasured results don’t matter? How to Measure without measuring?

Those who don’t enjoy measuring results, don’t enjoy achievement. And Unmeasured results don’t matter?

(Simpy because focusing just on the measured result encourages, you and organizations, to ignore other more important measuring sticks)

In general, someone is busy watching and measuring one number, but it’s the wrong one.

(We don’t measure a dependent variable simply because it is easy and straightforward, but to ask: “Is it a meaningful variable that corresponds to the experiment, testing or evaluation? Someone is busy watching one number, but it’s the wrong one.)

Measurement is fabulous. Unless you’re busy measuring what’s easy to measure as opposed to what’s important.

Dan Rockwell posted this June 6, 2013:

Hitting baseballs reminded me that effective assessments increase enthusiasm, concentration, and satisfaction.

The visit:

Dahliah, Asher, and Abram, three of our grandkids, are spending the week with us.

Asher, our 7 year-old grandson, is a sports fanatic. Yesterday, while in his red Phillies baseball jersey, I spent an hour hitting baseballs to him. He’s pretty good, if I must say so. He loves diving to make spectacular catches.

Poor performance:

His throwing, on the other hand, is inconsistent. Sometimes the ball has a mind of its own. Asher didn’t like seeing Poppi chasing after his inaccurate throws so I gave him a few throwing tips. Things got better but I could tell he still wasn’t happy.

Define winning. Measure results. Reward achievement.

The assessment:

“Hey Ash,” I said, “If Poppi doesn’t have to move to get the ball, when you throw it back, it’s a 10. But every step I take to get the ball is a point off.” His energy and attitude immediately lifted.

I took three steps to retrieve his next throw. Before I could announce his score, he called out, “That’s a seven.”

“Not bad,” I said. He smiled. Determination to get a ten gleamed on his face.

As his throws continued, he earned a few tens and everything from zero to nine. Curiously, after a perfect throw,  he called out, “Four.”

“Four?” I asked.

He said, “That’s four tens in a row.” He’d been keeping track of his achievement.

Enthusiasm requires:

  1. Clear pictures of winning.
  2. Measurable results that matter.
  3. Transparent, unbiased assessments.
  4. Immediate feedback.
  5. Belief that excellence is possible.

Bonus: Challenging and supportive environments.

What factors make assessments effective? Ineffective?


How to Measure without measuring? Are you measuring what’s Not important?

Note: In experiment, testing or evaluation, what is being measured is called dependent variable.

Seth Godin had to say this June 5, 2013 on “Measuring without measuring”

As an organization grows and industrializes, it’s tempting to simplify things for the troops.

Find a goal, make it a number and measure it until it gets better. In most organizations, the thing you measure is the thing that will improve.

Colleges decided that the SAT were a useful shortcut, a way to measure future performance in college.

And nervous parents and competitive kids everywhere embraced the metric, and stick with it, even after seeing (again and again) that all the SAT measures is how well you do on the SAT (Nothing to do with intelligence or effective performance).

It’s easier to focus on one number than it is to focus on a life.

Paypal and Chase and countless other organizations do precisely this: they figure out a metric, decide it’s important and then create a department to improve that metric.

Consider the Chase Fraud Prevention department.

It costs a credit card company (and especially their merchants) a lot of money when fraudulent charges are made, because they often have to eat the cost.

So this department of thousands of people works to make the number of fraudulent charges go down at the same time they keep expenses low.

Which sounds great until you realize that the easiest way to do this is to flag false positives, annoy honest customers and provide little or no fallback when a mistake is made.

Simple example: I regularly get an automated phone call from the bank with an urgent warning. But even when I answer the phone, the system doesn’t let me ring through to an operator.

Instead, I have to write every detail down, then call, wait on hold, prove it’s me, type in all the information, and THEN explain to them that in fact, the charge was mine.

And this department has no incentive to fix this interaction, because ‘annoying’ is not a metric that the bosses have decided to measure.

Someone is busy watching one number, but it’s the wrong one.

Or consider the similar problem at Paypal.

Stories of good (or great) customers being totally shut down, sometimes to the point of bankruptcy, are legion. There may be people at Paypal who care about this, but the security people don’t. That’s because they’re not measuring the right thing.

Measurement is fabulous. Unless you’re busy measuring what’s easy to measure as opposed to what’s important.





February 2023

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