Why Measuring Intangible Key Results Matters

Carsten Ley
Jul 2
3 min read

Updated: 4 days ago

Remember the saying, "What gets measured gets managed?" It is true! But in today's world, some of the most important things are hard to measure. Things like:

People & Culture: How people feel about working at a company.
Customer & Trust: How much people trust each other and the company.
Product & Innovation: How good a company is at coming up with new ideas.
Resilience: How well a company bounces back from problems.

You cannot easily count these things, but you can track them. It is important to do so because if you don't, you won't know if you're actually improving.

The Challenge: Making the Invisible Visible

The trick is to find ways to see progress in these "soft" areas. It takes some creativity, but it's possible!

What Are "Intangibles" Anyway?

Intangibles are things that matter a lot but are not easily measured, like customer loyalty or a company's reputation. They affect how people think, feel, and act, and they can make or break a company.

Think about Kodak. They used to be the king of photography, but they did not pay enough attention to how important innovation and what people thought of them were. Apple and other smartphone companies did, and they took over!

Key Principles for Measuring the "Soft Stuff"

Focus on Change, Not Just Activity: Don't just count how many training sessions you hold. See if people are actually using what they learned.
Use "Placeholders": Since you can't directly measure trust, look for signs of it. For example, if employees are recommending the company to their friends, that's a good sign.
Mix Numbers and Stories: Numbers tell you what is happening, but stories tell you why. Collect both!
Track Progress Over Time: One measurement does not tell you much. See if things are getting better or worse over time.
Ask People How They Feel: Surveys and interviews can be very valuable if you ask the right questions.

How to Measure Intangible Key Results

Here are some examples how to measure intangible Key Results

People & Culture (Trust, Engagement):
- How to measure: Use surveys to ask about psychological safety.
- Example Goal: Increase the psychological safety score by 10% in six months.
Customer & Market (Loyalty, Brand Trust):
- How to measure: Track Net Promoter Score (NPS), which asks customers how likely they are to recommend your company.
- Example Goal: Increase NPS among new customers by 7 points by the end of the year.
Organization (Innovation, Resilience):
- How to measure: Track how many new ideas from employees actually get tested.
- Example Goal: Launch 5 employee-driven innovation projects this quarter.
External Environment (Reputation, Partnerships):
- How to measure: Track your ESG (Environmental, Social, and Governance) rating.
- Example Goal: Improve our ESG rating by one level.

Common Mistakes to Avoid

Measuring Effort, Not Results: Don't just track how much you do. Track what changes.
Making Things Too Complicated: Simple measures are often better than complex ones.
Ignoring the Context: Numbers don't tell the whole story. Understand why things are happening.
Changing Measurements Constantly: Stick with the same measurements so you can track progress over time.

In Conclusion: It's Worth It!

Measuring "soft" things isn't easy, but it's important. It helps you see if you're actually making progress on the things that matter most to your company's success. Don't wait for perfect data – start measuring and learning!