What we measure shapes what we value. This blog explores why choosing the right indicators is essential to developing fair, effective, and forward-looking public and economic policies.
True impact lies in what goes uncounted: wellbeing, trust, cultural strength, or environmental sustainability.
Dr. Alexandra Block
Measurement as a Moral Act
Every policy has a purpose, but how do we know if it’s working? We measure. Yet too often, we measure what is easy—not what is meaningful. Over time, this distorts priorities, drives narrow outcomes, and overlooks what communities truly need.
Whether it’s GDP, test scores, hospital wait times, or employment rates—these numbers offer useful snapshots, but rarely tell the whole story. True impact lies in what goes uncounted: wellbeing, trust, cultural strength, or environmental sustainability.
To design effective policies, we must shift our focus from outputs to outcomes—and start measuring what really matters.
The Problem with Traditional Metrics
For decades, public and economic policy has been dominated by a narrow set of indicators, especially economic growth. While GDP tells us something about market activity, it tells us nothing about:
- Inequality
- Environmental degradation
- Social connection
- Physical and mental wellbeing
- Access to opportunity
Similarly, measuring hospital bed turnover doesn’t reveal whether patients feel cared for. Counting school attendance doesn’t show whether students are learning in a culturally safe environment. By relying on surface-level metrics, we risk building policy on shaky foundations.
Better Policy Begins with Better Questions
Before we decide how to measure, we must ask: What do we want to achieve? Instead of starting with available data, we should begin with values and desired outcomes.
For example:
- In economic policy: rather than solely focusing on growth, ask whether people have secure, meaningful work.
- In education: beyond test scores, consider whether students feel a sense of belonging and are equipped to thrive.
- In community services: move past service counts and ask if people feel safe, supported, and connected.
These questions lead to different metrics—and ultimately, to different policies.
Innovations in Impact Measurement
Globally, governments and organisations are experimenting with more holistic frameworks:
- New Zealand’s Wellbeing Budget uses measures like mental health, child welfare, and environmental quality to guide spending decisions.
- The OECD Better Life Index includes housing, work-life balance, community, and life satisfaction.
- Australia’s Closing the Gap targets for First Nations communities now include indicators co-designed with Indigenous leaders, reflecting community priorities.
These initiatives show that measuring outcomes aligned with people’s lived realities leads to more equitable and responsive policymaking.
Embedding the Right Measures
For impact measurement to guide good policy, we must:
- Engage communities in defining what success looks like.
- Invest in data systems that capture qualitative as well as quantitative insights.
- Use disaggregated data to uncover disparities across race, gender, ability, geography, and income.
- Align funding and accountability with outcomes, not just activities.
Conclusion: If You Can’t See It, You Can’t Change It
Measurement is not just technical—it’s political. What we choose to measure signals what we value. If we want policies that promote fairness, wellbeing, and sustainability, we need metrics that reflect those goals.
In short: better measurement is the foundation of better policy—and ultimately, a better society.