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Pick the right metric to incentivize the behavior you want

33 pointsby edmondlauabout 12 years ago

3 comments

mselloutabout 12 years ago
Profit per visit seems flawed as well. Why not just optimize profit, or long-term expected profit?<p>The vague statement, "the shift in metric played a huge role in aligning the company’s focus," seems at odds with the article's emphasis on metrics. Let's get some measurement of the effect of the metric.<p>I imagine that the metric change from profit per store to profit per visit was just part of a bureaucratic shift in the way Walgreens divided territory among managers.
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benawabe896about 12 years ago
Bummer, I thought this was going to be an article talking about a person's own behavior. Personal analytics are fascinating to me, and if someone was to figure out some cool metrics to help incentivize personal behavior, that would be really interesting.
stephengillieabout 12 years ago
Hey, it's a Walgreens ad!<p>Basically, their strategy is to saturate the market, and they don't care if they steal sales or cannibalize their own sales. They're maximizing profit per customer visit, but ignoring customer visits per store per week?
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