A good metric must be attainable, easy to understand, and cheater-proof.
- [Instructor] A good metric provides feedback,…but it also helps drive people to make good decisions.…It can guide employees toward expected behaviors.…The good metric might even be able to predict…what will happen next.…But it can only do good things if the metric…is tied to a desired strategy.…Consider this generic strategy for an online retailer.…They want to provide customers convenience, security,…reliability, and value.…
If customers, managers or investors demand proof,…do you have metrics to demonstrate your competence…in each area?…Metrics that are tied to your strategy…are often easier to manage.…They provide quick and useful answers,…and for your employees and managers,…they point directly to the desired behaviors.…Consider online security.…If you have metrics that measure incidents of fraud…with a product, incidents of fraud in payment,…incidents of customer information breaches,…you've now directed the security team…to focus on preventing these types of incidents.…
Low incidence numbers signal favorable outcomes.…
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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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