Saturday, 15 April 2017

What is a metric?

A metric is essentially a clear, quantitative, objective measure to assess performance or progress towards a goal.

Metrics can identify important events and trends in the organization and can help guide the organization toward informed decisions.

Every metric will affect actions and decisions. Guidelines for developing metrics: Metrics and measurements should indicate the ability to meet established business goals (customer satisfaction, cost reduction, improved quality, productivity and cycle time)

  1. To ensure that the metrics are SMART (Specific, Measurable, Attainable, Relevant, and Time bound).

  2. Make sure that the metrics are relevant to the business goals.

  3. Ensure that the metrics are clear grouping together, to indicate the value for e.g. performance to business goals.

  4. Include past performance to indicate how today compares to the past.

  5. Keep it simple.

  6. The metrics should be able to tell the story.

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