Metrics & Measures

Youve heard it before: You cant manage what you dont measure.
Peter Drucker

METRICS help monitor progress toward goals and expose inefficiencies. They also provide valuable insight for change and improvement.

Whats the difference between metric & measure?

MEASURE:

Use the thermometer to determine outside temperature

32 degrees Fahrenheit is freezing

METRIC:

OUTCOME:

Use the scale to decide if you need a jacket

What do most organizations measure?

70% 55%
use metrics to review project results

use metrics for performance and goal setting

41% 38%
use metrics for external benchmarking

used metrics to link to strategies to individual goals

Use a dashboard to capture KPIs, track progress, and measure outcomes.

PURCHASING INDICATORS
Percentage of on-time deliveries Percentage of deliveries received on time Number of correct deliveries

KPI

cost is equivalent to $2.40 of revenue growth.

FACT: Every $1.00 reduction to operating

CUSTOMER SERVICE JOURNEY
Number of complaints received First call resolution rates New customer retention rates

RESOURCES
Employee retention rates Number of applications to job postings Number of hours of training and development per employee Percent of days lost to illness

MONITOR RESULTS
Assess progress and at regular intervals Provide real-time feedback Monthly Business Reviews (MBRs) Dashboards

0%

100%

WHATS WRONG
Percentage of payments that are late Percentage of invoices overdue Average monetary value of overdue invoices

How to get started.

STEP 1: Define what you want to measure
What top factors will impact the business in the next year? What are the revenue objectives, quarterly and annually? What aspects of the business (e.g. new customers, increased sales, reduced time to market) will demonstrate success?

STEP 2: Choose metrics wisely STEP 4: Evaluate and adjust

STEP 3: Monitor

STEP 5: Communicate

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Sources
1

Infographic created by www.4imprint.com, based on the . Download Blue Paper at: Metrics and Measures Blue Paper http://info.4imprint.com/bluepapers/metrics-and-measures/

Establishing Effective Metrics for New Product Development Success. Tech. Siemens PLM Software, Aug. 2009. Web. 31 May 2013. <http://m.plm.automation.siemens.com/en_us/Images/7570_tcm1224-4811.pdf>. CashRebel. CashRebel. N.p., n.d. Web. 31 May 2013. <http://www.cashreb.com/2013/02/25/what-can-your-money-metrics-tell-you/>.

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