Is your metric strategically oriented? Does it provide guidance and value?
- In the world of retail, there are a few common metrics.…Number of customers, retail conversion rate,…average sale and gross margin.…Let's say we have a new employee…in the company.…Actually, they're new to the world of retail.…The manager tells this person the numbers should…all be high.…As an employee it's her job to make…those numbers big.…But we have a problem.…The new employee doesn't know what these numbers mean…or why they're important.…
Why are the metrics there?…To motivate employees.…To guide them toward good behaviors.…The metrics are supposed to help…our people make good decisions.…The problem is if our people don't know…what the metric means, how can they be expected…to understand which behaviors they should change?…Our best employees don't necessarily want…to be told they're good or bad.…They want feedback.…They want to know where they're doing well…and of course they'd like to know…what in particular they need to improve.…
Plus if you're a manager, especially a manager…that can't be on location all of the time,…
- 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
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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