A great system of metrics without support from top to bottom can result in poor results.
- You have goals and metrics.…You have a team of individuals, departments,…and even companies working together…to meet a common set of goals,…but in many organizations,…you find that people are not working together.…People are trying to move in opposite directions.…Why does this happen?…Well as you guessed, very often,…I think numbers drive people to work…against each other, not in cooperation with each other.…
Let's take a look at a simple example.…At the very end of a retail consumer supply chain,…we have a retail store and a distribution center.…Together, they work to make customers happy,…but often, these two groups are moving…in opposite directions, and they often grow…to dislike each other.…Once you look at the key metrics that guide them,…it's not too hard to tell why this happens.…What is one of the primary metrics…for a retail store?…Sales.…
They went to sell stuff, lots of it.…How about a distribution center, a DC?…Since carrying inventory comes with…lots of risk and costs, DC managers…are often asked to keep inventory levels low.…
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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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