Why do we measure? It's so we can look at yesterday, impact today, and ponder tomorrow. In addition, measuring helps us alter behavior, analyze the past, discover, predict, and more.
- Time, temperature, grades, sports scores, money. These are all common measurements. The question is, why do we measure? What's the value in measuring? I think most humans measure because they want more. They want to maximize their life. They want to make good decisions. They want to improve. Think about the moments in your life when you measure. In the morning, time and temperature. They tell you how quickly to move and what you should wear.
At work, you consult numbers to see how the company is doing. If I'm the boss, measurements can tell me who needs help and who deserves praise. I can also use metrics to motivate others. If I'm in a meeting, measurements can be used to persuade. If my company has locations around the world, measurements can be tools to help me manage from afar. Sometimes, having the right measurements can help me make good decisions. If I'm a new employee, measurements can provide me guidance.
They tell me what are the most important parts of my job. If the stock market is your business, measurements will help you figure out which companies to invest in. In short, measurements can help managers get the most out of their time, their money, and their people. But, measuring the wrong thing can lead to bad decisions, bad employee behaviors, and unhappy customers and in the high stakes world of business, desperate managers can use measurements to manipulate and mislead.
So, in our data-driven world, it doesn't matter which field you're in. It doesn't matter if you're the one being measured or the one doing the measuring. Knowing what to measure and how to measure can be a career-defining skill. This course will try and answer your primary questions about measuring performance. What should be measured? What are the most common mistakes companies make when measuring? How can a manager gain a competitive edge by understanding performance measurement? So welcome.
Managerial confidence and improved decision-making are right around the corner.
- 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.