I Stopped Trusting the Top Quartile
“But the spreadsheet team is in the budget for the Philadelphia office, not the servicing hub.”
“Exactly. That’s how we hit the target.”
“So the ‘cost per contract’ we showed the board yesterday… it’s a lie?”
“It’s not a lie. It’s a measurement. It just doesn’t measure the Philadelphia office.”
I sat three rows behind them, nursing a lukewarm coffee in a Marriott ballroom that smelled of industrial carpet cleaner and ambition. On the stage, a consultant was clicking through a slide deck titled Efficiency Benchmarks for the Modern Equipment Lessor. There it was: the Top Quartile. A bar chart showing that the most efficient firms were servicing forty thousand contracts per full-time employee. The room was nodding. People were taking photos of the slide with their phones.
I looked at the back of the woman’s head in the second row-the one who had just admitted to hiding an entire team of spreadsheet-jockeys in a different cost center. She wasn’t a villain. She was a survivor. She knew that in the world of institutional finance, you are what you measure, and if you can’t make the reality efficient, you make the measurement convenient.
The Micrometer’s Blind Spot
I spent as a machine calibration specialist. My job was to ensure that a millimeter in