FA-08

Metric Antagonism

Systemic Anatomy

Systemic Description

Operational efficiency KPIs or short-term revenue targets directly conflict with customer experience goals, forcing staff and systems to optimize against the customer's interest.

Root Cause Type

Performance Incentive Misalignment

Why It Recurs

Business units are measured and rewarded on isolated operational metrics (AHT, conversion rate, ancillary attach) without counterbalancing quality or satisfaction metrics.

Governance Failure

Lack of balanced scorecard governance; revenue and cost leaders hold significantly more organizational power than CX leaders.

Scope Boundary

Does not explain pricing strategy decisions themselves, only the friction caused by execution tactics driven by conflicting performance metrics.

Structural Risk Profile

Decision Frequency

high

How often decisions of this type are made in the affected context.

Blast Radius

cross-domain

The scope and scale of impact when this friction manifests.

Reversibility

costly

The ease with which decisions affected by this friction can be undone.

Time to Impact

cumulative

The delay between decision and observable consequence.

Decision Fallout

Typical Decisions

  • Incentivizing contact center speed (Average Handle Time) over resolution quality
  • Setting aggressive ancillary sales targets for service staff without customer context awareness

Delayed Effects

  • Transactional interactions that maximize short-term revenue while damaging Customer Lifetime Value
  • Staff 'gaming' metrics at customer expense to meet targets

Early Warning Signals

  • Customer churn increases despite operational metrics showing 'green'
  • Complaints about pushy sales tactics or rushed, unhelpful service

Manifestations

Airlines Customer Service & Complaints

Difficulty obtaining written confirmations

Insufficient performance metrics focus

Airlines Group Booking & Corporate Travel

Slow quote response times

Poor internal coordination between sales and operations

Airlines Post-Flight Feedback & Engagement

Difficulty providing specific feedback

Insufficient staff empowerment to act on feedback

Airlines Refund & Exchange Processing

High change fees

Complex legacy fare structures

Hospitality & Hotels Billing & Payment

Hidden fees not disclosed upfront

Inadequate staff training on billing procedures

Hospitality & Hotels Billing & Payment

Poor handling of split billing requests

Poor communication about fees and taxes

Hospitality & Hotels Business Center & Meeting Rooms

Confusing booking process for meeting rooms

Poor coordination between sales and operations

Hospitality & Hotels Check-In Process

Upselling pressure during check-in

Inadequate staff training on guest service

Resolution Boundary

Decision Level

executive

This friction requires executive-level resolution because performance measurement systems and compensation structures are determined at senior leadership levels with authority over organizational incentives. Operational management cannot redesign the metrics by which they are evaluated, and cross-functional coordination cannot resolve incentive misalignment that originates in executive-level goal setting and reward allocation.

This friction cannot be resolved locally.

Type of Change Required

Cross-Functional Accountability Framework

  • Individual department optimization against the customer occurs when accountability structures do not include shared responsibility for experience outcomes. The change required involves creating joint performance obligations that prevent one function from achieving targets by degrading another's domain.

Incentive Structure Realignment

  • Metric antagonism continues when compensation and advancement are tied to metrics that conflict with customer interests. The friction persists until incentive systems are redesigned to penalize optimization of isolated metrics at the expense of holistic outcomes.

Performance Metric System Rebalancing

  • This friction persists because business units are measured on isolated operational or revenue metrics without counterbalancing quality or experience metrics. The required change involves restructuring performance measurement to include experience outcomes with equivalent weight and consequence as efficiency or revenue targets.

What Does Not Work

  • Including experience metrics as supplementary rather than primary performance indicators fails because it signals relative unimportance. Staff prioritize metrics that carry primary weight in evaluation and compensation decisions.
  • Adding customer experience measurement that does not influence compensation or advancement fails because it creates visibility without accountability. Monitoring in the absence of consequence merely documents the friction without addressing its structural cause.
  • Training staff to prioritize customer experience fails when their performance evaluation and compensation depend on conflicting metrics. Coaching cannot overcome structural incentive misalignment; staff rationally optimize for the metrics that determine their career outcomes.

AERIM

AERIM is the operating system designed to resolve the structural conditions described above. It addresses the governance, coordination, and decision architecture failures that the Friction Atlas documents. AERIM operates at the resolution boundary where local fixes fail and systemic change is required.