Driven by Metrics

Description: Performance metrics are a necessary part of managing an organization. However, they have good and bad impacts on individual behavior, so organizations need to find ways to maximize the good while minimizing the potential damage.…


Keywords: Metrics,Business performance,Measurement,Key performance indicators (KPIs)

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Thanks for this article. Will share this with my colleagues as we are in the midst of metric and performance assessment and design for 2009. I agree that several factors need to be taken into consideration to be effective.
--MBB, 10-31-2008

Generally a good readable article, but I have two comments. A. Figure 1 illustrates how scale affects perception, not perspective - hence a smaller scale makes perceived variation look greater. B. Table 2 gives a good way to assoicate metrics but for me the question is then how to trim the branches so a reasonable number of metrics are used?
Han.
--Han van Loon, 10-03-2008

Very timely for our organization - now's the time to start reviewing things for the next year and metrics should be one of the first things along with your strategic plan and budget items. One thing the author could have emphasized more is the idea that metrics should focus on performance drivers rather than performance results. It's easy to measure field failures or customer returns but what are the drivers for these kind of measures. Getting to this level is where the payback is really at.
--Robert Napoletano, 09-09-2008
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