Metrics aren't perfect. In this video, examine the grading system in the United States and the challenges of building the perfect metric.
- So, a metric must be measurable,…attainable, and easily understood.…It needs to be cheater proof, and of course,…the metric needs to be strategically oriented.…If we took your organization's best metrics,…would they pass all of these tests?…Probably not.…Does that mean they're all useless metrics?…No.…There's no such thing as a perfect metric.…All metrics have their flaws.…
But, we must do our best to develop good metrics.…And for each of these metrics,…it's vital that we also understand their likely weaknesses.…Remember, a metric does not make the decision.…A metric provides guidance.…So, when a manager uses a metric,…the manager needs to understand the weakness of the metric.…The metric is only a number.…The manager has the benefit of understanding…why the number could be misleading in certain cases.…
And, when a group of managers work together,…the weaknesses of the metrics…will often be the talking points.…As the managers explore the validity of the metric,…they will hopefully come to a reasonable decision…
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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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