Many managers rely too heavily on metrics to make decisions for them. Metrics don't make decisions—they provide guidance. Learn how to use metrics to inform your next decision.
- In some cases, our metric is a rating or a grade.…On a scale of one to five,…rate the service you received during dinner.…On a scale of 1 to 100, rate the person…you interviewed this morning.…Which letter grade, A to F, does this paper deserve?…How do we come up with these scales?…How many graduation's levels do we need…to have when measuring?…Does it really matter?…Believe it or not, it really can matter.…Let's go back to a metric we're probably all familiar with,…getting grades in school.…
Traditionally, schools provide grades from an A to F scale.…"A" being the highest grade and "F" being the lowest grade.…Let's begin with that as our starting point.…Suppose we give grades A through F…and this is the distribution of our grades for a class.…25% of the class got A's.…40%, B's.…25% got a C.…7% got a D.…
And 3% got an F.…What do we notice?…We really only have three highly populated grades.…And the other two grades wouldn't be considered…to be satisfactory.…An F is really bad.…But would you consider a D student as significantly better?…
Lynda.com is a PMI Registered Education Provider. This course qualifies for professional development units (PDUs). To view the activity and PDU details for this course, click here.
The PMI Registered Education Provider logo is a registered mark of the Project Management Institute, Inc.
- 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.