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 that provides both qualitative, and quantitative perspectives. Now, since each metric only tells part of the story, and since metrics often have some weaknesses, most organizations utilize a system of metrics to provide a more three-dimensional picture.
We just discovered the challenges of developing a strong, single metric. In our next section, we'll start to look at what to consider, as we develop a well-rounded, system of metrics. A system of metrics that will work together to provide a more complete assessment of the people, processes, and resources being evaluated.
- Metrics and human behavior
- Common corporate errors in measuring
- Developing a good metric
- Using the performance measurement tune-up
- Avoiding redundancy
- Using dashboards, infographics, and other data visualization tools