How effective are your metrics in steering your business success? Review the questions in the table and determine what changes are necessary to leverage metrics to drive high performance.
| Question | Consideration |
| 1.How many metrics do you look at? | Fact:It takes time and effort to collect data, compile the information and create the report
Focus: Critical measurements that matter |
| 2.How many measurements are finance-related? | Fact:Financial results are lag indicators—it is too late to change anything when you see them
Focus: Measure work that are drivers for results |
| 3.Are milestones of activities included? | Fact: Milestones are perfect for project management—they monitor progress of activities
Focus: Results rather than activities |
| 4.Is there any statistical measurement? | Fact: Statistical data are great for planning—they are drivers for resource allocation
Focus: Results that are indicative of quality of work and improvement |
| 5.How do you select what metrics to use? | Fact: Brainstorming and adopting other’s measurements risk misdirecting resources to things that don’t align with corporate goals
Focus: Look at your strategy and priorities, articulate clearly the results you want to achieve |
| 6.Do the metrics reflect the outcome you aim to achieve? | Fact: Results matter
Focus: Evidence of success |
| 7.Do the measurements incent the desired behaviour? | Fact: You get what you measure
Focus: Take a big picture view and avoid silo mentality |
| 8.Do you measure activities that drive results? | Fact: Pareto principle says 80% of the effects come from 20% of the causes
Focus: Measure critical activities for they must be done well |
| 9.How well do the measurements correlate to the corporate goals? | Fact: Goals can be achieved only when you are clear on the results you want
Focus: Clearly define results and measure with conviction |
| 10.Can employees relate their work to the corporate goals? | Fact:It is not possible to align decisions and day-to-day operations if there is gap in the understanding of the corporate goals
Focus: Tie departmental measures with corporate measures to link up activities for optimal alignment |
© Connie Siu 2012. All rights reserved.
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