You Are What You Measure – A Leader’s Tale

“Haim, you have to save us!”

These were the exact words I heard last month from Arik, the VP of R&D at a successful multinational company.

“It’s a catastrophe. The Berezina. The end of any agility we’ve put in place. Our main client, who accounts for 70% of our income, is renewing their agreement with us but is demanding we use team velocity metrics to measure productivity and progress.”

“So, what’s the problem?” I asked.

“The problem is critical. How can we ensure that our velocity keeps increasing?”

“I understand your concern, and I have a solution for you. But you need to trust me completely. Are you in?”

“Wow, Haim, that’s a big ask. If it works, you’ll be rewarded, but if it fails, both our heads will be on the chopping block!”

We closed the deal.The main use of metrics is often seen as measuring people’s productivity or quality. However, the most important use of metrics is to influence behavior

“Okay, my solution is simple: accept the agreement and go with velocity measurement.”

“But what if… are you sure?”

“Go with it. Trust me!”

. Metrics guide people to focus on specific skills or areas of need. Remember: you are what you measure. This is akin to the principle of autoregulation in biology—systems modify their behavior to meet the standards by which they are measured.

If you measure programmers by the number of lines of code they write, they’ll write a lot of code, regardless of its quality. If you measure construction workers by the solidity of a building, they may build the strongest walls but fewer buildings overall. Similarly, if you measure a physician by the number of patients seen, they may spend less time with each patient. And if you measure teams by velocity, you’ll always see an increase in velocity, but it won’t necessarily reflect real productivity or value.

On the other hand, metrics can be a powerful tool to drive improvement. Want teams to enhance their capabilities? Don’t try to convince them—just measure the capability you want them to develop, and they will find ways to improve. Metrics can be a transformative force for change, but they must be used thoughtfully, or you risk unintended consequences.

And what happened with Arik and his big client? My head is still firmly on my shoulders, and the client quickly discovered what you already know: you are what you measure.

Be smart.

The Pygmalion Effect: The Power of Belief

Imagine if simply believing in someone could elevate their potential beyond what they thought possible.

This is the essence of the Pygmalion effect—a powerful reminder that our expectations can shape reality. Whether it’s a teacher inspiring students or a leader guiding a team, the power of belief can be the catalyst for exceptional results.

In Ovid’s book, Pygmalion is a Greek sculptor who creates an exquisite sculpture of a woman.

Pygmalion falls in love with his creation, and during Aphrodite’s festival, he asks the goddess to grant him a woman as beautiful as his sculpture. Upon returning home, he kisses the statue and feels warmth on its lips—the marble has come to life. Pygmalion marries the woman, and they have a son. In modern times, this tale echoes what some call the “Pinocchio Effect,” where a creation comes to life in response to a heartfelt wish.

The Pygmalion effect, as described by Prof. Robert Rosenthal, refers to the power of expectations on outcomes: higher expectations often lead to higher performance.

Rosenthal conducted two key experiments in 1963. In the first, he worked with Lenore Jacobson in a California school. At the beginning of the year, all the pupils took a General Ability Test. Some students were then randomly labeled as “academic bloomers.” Teachers were led to believe these students would excel, and by the end of the year, those students showed significant improvements in IQ compared to their peers. The teachers’ belief in these students’ potential led to better outcomes.

In the second experiment, Rosenthal gave rats to two groups of students, telling the first group that their rats were genetically enhanced for cognitive skills, while the second group received “normal” rats. In reality, none of the rats were genetically modified. However, the first group’s belief in their rats’ abilities led to better performance in navigating mazes.

In the organizational context, this means leaders wield significant power to uplift their teams simply by believing in them and fostering a culture of trust. Encouraging creativity, embracing failure as part of the learning process, and fostering an experimental mindset all contribute to better outcomes. The successes of innovations like Gmail and AdSense are rooted in environments where experimentation was encouraged. This aligns with the ideas from Leading Through Chaos, which emphasize the importance of guiding teams effectively through uncertainty.

However, there is also the Golem effect—the opposite of the Pygmalion effect. When leaders lack trust in their teams, it leads to poor performance, a narrow mindset, and stifled creativity. Leaders must recognize and combat these negative dynamics to create an inspiring environment that empowers teams. True team autonomy and creativity are achieved through the Pygmalion effect, where trust and belief unlock the potential for greatness.

As Winston Churchill said, “Success consists of going from failure to failure without loss of enthusiasm.”

How hard is it to say “NO” to a new project?

Taking on one more project can push you over the edge. Game theory says skipping one might be your win. How do you decide?

 

22 Words to Save the Day – The Most Powerful and Simple Algorithm for Handling Any Crisis

Words to Save the Day – The Most Powerful and Simple Algorithm for Handling Any Crisis

Wow, what a thrill!
I’m in France, driving 140 km/h to Normandy in an Audi A9 lent to me by my client. Such peace, such power. My adrenaline is slowly fading as I lose myself in thought, until suddenly I hear, “Beep beep… Audi, pull over!”

In an instant, I run a quick checklist with myself:
Was I speeding? No.
Am I wearing a seatbelt? Yes.
Was I on my phone? No.
Did I text? No.

I pull over, and although I know I haven’t done anything illegal, I still feel a knot in my stomach, my heart pounding at 200 beats per minute.
“License, please, sir.” I hand my driver’s license and registration to the officer through the window without making eye contact.
“Sir, do you know why I pulled you over?”
Honestly, no. I was driving within the law, so that’s what I tell the officer, noticing he’s not in uniform but wearing an armband marked “POLICE.”
“Think hard! Really think! You don’t know why I stopped you?” His tone becomes stern.
I genuinely don’t know, sir.
“Because I missed you, you fool!” the officer yells.

I glance out the window and recognize Alex. “Alex Pinto! No way! I didn’t know you were a cop.”
“Yes, I’m a commander in the serious crimes unit. Challenging, but you know me; it’s what I dreamed of my whole life.”

Alex Pinto is a childhood friend. We grew up together in elementary school, and even back then, he declared he’d be a cop one day to catch the bad guys. We drifted apart in middle school but met again in high school when I joined a self-defense organization that, in collaboration with the Israeli embassy, protected Jewish sites like synagogues and events like protests or conferences. We trained about fifteen hours a week, guided by security personnel from the embassy and krav maga instructors from Israel.

After a long hug, we started playfully “fighting” on the side of the road, reliving old times. Even though Alex is taller and stronger than I am, I managed to pin him, playfully choking him from behind. Alex wrestled, trying to flip over or poke my eyes, but he had no chance. I knew he’d have to tap out, signaling surrender.

Alex was panting, and I was feeling quite triumphant. Suddenly, I heard a voice behind me:
“On your knees, hands behind your head.” I looked up to see three uniformed officers with guns drawn, approaching.
Wait… what…
“On the ground, right now!”

I released Alex and knelt down.

Alex remained silent, knowing he’d be fine. Meanwhile, I saw the tension rising in the officers, and I quickly realized that someone had to say something really  fast, or things would go very badly for me.
Here’s what I said. You might respond differently, but here’s my exact line:

My name is Haim Deutsch.
I’m a childhood friend of Alex, standing here.
Alex, please, say something to these guys… now, because I’m having a panic attack!

I knew my response had to be short and direct (27 words).
I understood that defensiveness or trying to explain would only make the officers more agitated.
I needed to clarify the situation as simply as possible and prompt Alex to act—fast.

And if we step back from this encounter on a French roadside to our daily lives, we’ll realize how often we encounter similar situations with our employees and team members. Most of these aren’t life-or-death situations, but one wrong word can quickly lead to frustration, unresolved issues, and a feeling of being misunderstood.

In my Catalyst Leader training series, which I teach to managers in organizations, I emphasize the importance of concise, impactful communication, especially when it’s critical to complete a project on time, advance a joint initiative, handle sudden crises, and more. How can you analyze a situation quickly and respond effectively, avoiding ego-driven or automatic reactions from the first blow? We don’t always get a second chance in life or in organizations.

As leaders, we must develop communication skills that are sharp, precise, and agile. We need to learn to simplify complex situations into clear messages, presenting solutions that others might not even notice.

As leaders, we must accept that problems happen—they’re part of life, of our reality, and a guarantee from Mr. Murphy. I can accept that there’s an issue blocking work, production, or delivery. But I can also embrace a solution-focused mindset: everything is solvable!

I early taught my direct reports this mantra: “Don’t come to me with excuses about why something didn’t work as expected—the supplier was delayed, time was tight, etc. (Believe me, I know how much pressure you’re under). Instead, tell me what will work, how we’ll continue, and move forward.”

This seemingly simple approach can have an immense impact on effective, concise, and solution-oriented communication. Don’t explain me why not; tell me how yes.

If there’s a problem, if something collapsed, if the project won’t finish on time, or if three officers are pointing guns at you, here’s what I suggest:

  1. Describe the situation briefly—no more than ten sentences.
  2. Present the solutions you’ve considered—at least two.
  3. Point to your preferred solution and explain why.

Now, the other side is ready and prepared to help:

  1. Think together and analyze the best solution.
  2. Understand what they need to do to help you.
  3. Set a timeline for implementing the solution.

In my opinion, this is the most effective algorithm for handling a crisis, and this is the way of the Catalyst Leader.

If you’re wondering what happened with me, there on the roadside with my hands behind my back… well, in France as in France, we ended the event at a bar with strong drinks…
… Not for me, though. I still have a long way to go, and now’s not the time to get arrested for drunk driving.

In This Game, It’s Either Game Over or Next Level – Breaking the Vicious Cycles Holding Us Back

It felt like an Ephraim Kishon’s story

Four years ago, October 29, 2020, COVID Pandemy

The phone rings. My sister-in-law, Jocelyn, is up to make Aliyah and come to settle in Israel, She is calling me on WhatsApp from New York.

“Haim, I’m stuck. They won’t let me come to Israel—it’s hopeless.”
“What? Why? I thought everything was ready for your move!”
“Well, it’s not. The Israeli consulate in New York is refusing to grant me an entry visa. We’re stuck. We’ve already sold the apartment! Our move-out date is December 15… We’ll be on the street! If COVID isn’t over by then, I don’t know what we’ll do.”

Joce is my wife’s older sister.

After living in Israel for eleven years, she took a teaching position in communications at New York University. There, she married to Willy. Now that Willy has retired, they made the big decision to move to Israel. Willy would be a new immigrant, but here they were, stuck at the last hurdle—a consulate official refusing Joce’s entry visa. I could almost sense the absurdity of a story straight out of Kishon.

“But why won’t they give you a visa if you have an Israeli ID and your husband is a new immigrant?”
“Because he’s not yet an Israeli citizen, and I, while holding an Israeli ID, am technically classified as a permanent resident.”
“And…”
“And due to COVID, I haven’t been in Israel for 180 days in 2020 as required by law. They don’t know how to classify me, so they’re refusing me an entry visa. My husband Willy can fly, but I can’t.”

It was a situation straight out of a Kishon story, wasn’t it?

Stay tuned.

I call the Population and Immigration Authority to ask how to help. They tell me that if she wants their help, she has to be physically present in Israel; otherwise, the consulate decides.

I refuse to accept this answer. I call again and get the same response: “The consulate official makes the decision.” I call a third time, a fourth time.

On the fifth call, I request an appointment to discuss the visa without detailing the issue—I need to crack this situation.

In such situations, people usually get frustrated, blame others, and give up.

But I knew this was a test, a crossroads: either it was Game Over, where I would give up and tell Joce there was nothing more to do, or I would make a clear, unwavering decision to go all in.

The goal was simple: to free Willy (and Joyce) and move to the Next Level in the game. But I knew from experience that success would only come from being fully focused on one outcome: obtaining the signed entry visa, in hand or inbox.

The day of my appointment with the Population Authority arrives, and I come armed with all the necessary documents—copies of family members’ ID cards, proof of Willy’s status as a new immigrant, and more. The conversation with Li, the clerk, is surreal:

“Joce can come to Israel once her husband is an Israeli citizen.”
“So, it’s all set?”
“No. Willy is not Israeli; he’s classified as a new immigrant. For the consulate to approve, he has to be Israeli.”
“Let’s change his status then.”
“That’s not possible; he must be physically present in Israel to do that.”
“Willy is elderly, doesn’t speak Hebrew, and cannot come alone—he needs Joce with him.”
“Fine. She can come with him once she has an entry visa in hand.”
“Let me clarify: for Joyce to come, Willy must be Israeli; for Willy to become Israeli, he must come to Israel; to come to Israel, Joce must come with him! But this is a self-sustaining vicious cycle with no way out!”
“Exactly. You’ve described it perfectly,” Li smiles at me. Kishon must be turning in his grave.

But I was in familiar territory—breaking vicious cycles is my specialty.

If I could help tech companies turn destructive cycles into constructive ones, I could work my magic for Joyce.

Step 1: Identify the Link in the Chain to Break
I thought about how I could apply my professional skills here.
“Listen, Li, her whole family lives in Israel; you have to help. We need a way to allow the wife of a new immigrant, who has not yet become Israeli, to accompany him. How can I help you make this happen?”
“I need proof they genuinely intend to settle in Israel, not just escape COVID in New York.”

Step 2: Remove the Weak Link
“I’ll get you proof that they sold their home in the U.S. and bought a home in Israel two years ago, and that Joce is registered for rabbinical studies in Ra’anana. Will that be enough?”
“I hope so. Send me all those documents today. I’ll complete a special application form and forward it to the committee in Jerusalem, which meets early next week. We should know more then.”
“Li, are you really willing to help resolve this embarrassing situation and get Joyce and Will to Israel?”
“Yes, absolutely. I’m with you on this,” Li shouted back, “we’ll get them here.”

Step 3: Turn the Vicious Cycle into a Virtuous One
Ahead of the committee meeting, Li called to ask if Joce and Willy had flight tickets and six months of COVID medical insurance coverage. For me, this was an opportunity to turn the vicious cycle into a success story. That day, I returned with flight tickets for December 29 and a signed insurance contract covering them both.

Five days later, I received Joce’s entry visa by email.

Wednesday, December 30, 2020, 1:30 PM
Willy and Joce land at Ben Gurion Airport.

It was either Game Over or Next Level—I chose Next Level.
And the reward for reaching Next Level? A new game, with fresh challenges and new growth.