Setting metrics that are too high or unachievable can have unintended consequences. In this video, learn how building attainable metrics helps reinforce goals.
- A company has a goal of high sales.…So what do they do?…They establish a monthly sales goal as a metric.…Hit the goal, you get a bonus.…You got a goal, you have a metric…that points right at that goal,…we seem to have alignment.…But, what if the sales goal is too hard to hit?…Let's say the sales goal is 250,000 dollars in sales.…You get to the 20th of the month,…and you're still short 150,000 dollars.…
You're probably not going to make it.…What are your options?…Try harder.…Admirable, but probably not the best…long-term strategy if you want bonus money.…Give up.…A 10 day vacation sounds nice but,…the boss may get suspicious and it…doesn't exactly help build the relationships…that might get you the next month's bonus.…How about something between?…Try to get sales, but delay processing them…until the first of next month.…
Lose the paperwork.…Call them back on Monday instead of today.…This month may be gone, so let's get a jump start…on next month.…This might be a good strategy for you,…but is it what the company wants?…
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- Explain why metrics are necessary in business settings.
- Define KPIs.
- Identify the issue of attempting to reach 100% in a given metric.
- Summarize the limitations of metrics.
- Recall the three steps for making a metric understandable for employees.
- Describe the characteristics of an effective metric.
- Compare and contrast the costs and benefits of measuring too many versus too few metrics.
Skill Level Intermediate
Business Analysis Foundations: Fundamentals (2014)with Haydn Thomas2h 13m Intermediate
Balanced Scorecard and Key Performance Indicatorswith Jim Stice1h 17m Intermediate
1. How and Why We Measure
2. Errors and Challenges in Measuring
3. Developing a Good Metric
4. A System of Metrics
5. Performance Measurement Tune-Up
6. Above and Beyond
Next steps1m 57s
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