A good metric must be measurable, easy, and economical to capture and store.
- Companies have all sorts of questions.…Who's the best employee?…Which segments of the industry are likely to grow?…Which cars are the most reliable?…In each of these cases, a company probably…uses a metric or multiple metrics…to try and answer the question.…The bigger question is:…how do we develop a metric?…Perhaps two of the most basic things…to consider in developing a metric are,…is the metric measurable?…And, if it is measurable,…how would the data be gathered?…In some cases, these two things are easy.…
Let's take a simple example.…Let's try and figure out, who is our fastest runner?…Our metric will be the person's speed…in a 50 meter sprint.…Is this measurable?…It is, simple, easy, no problem, right?…But, let's consider, how would the time be tracked?…Another human with a stopwatch?…When and where will the reading be taken?…What happens if there's an error in measurement?…Does the runner get one or more attempts?…Does the runner's fastest, slowest, average,…or median attempt get recorded?…How many times per year is this metric tracked…
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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
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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