Measuring Failure
Instinctively -- when you encounter one -- you know that you are looking at a bloated bureaucracy; the real question, is how to prove it? We obviously need some simple form of cost-based accounting, that gives us a decent metric on which to compare various organizations and their effectiveness. The key here is the the measure be simple and that it cannot be subverted by those trying to apply it. Clearly, it is in a bureaucracies best interest to hide its own inner ineffectiveness; that is the very essence of why the organization is defective in the first place. To keep it simple we only need to deal with two basic observations. The first is that at the end of the day all organizations produce either products or services, nothing else. Regulatory monitoring for instance, is just a service for the public to insure that the rules are followed. Building roads is a product, while maintaining them is a service. Everything falls into one or the other category. The second observation is that a...