From the course: Measuring Business Performance
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Additional considerations in developing good metrics
From the course: Measuring Business Performance
Additional considerations in developing good metrics
- Developing a good metric is tough. We want it to provide guidance to workers and managers. In a previous video, we saw that a good metric must be strategically oriented, measurable, easily understood, and attainable. But here are two other things to consider as you choose and develop metrics. First, cost. Sports stats, customer service metrics, medical data, how is all of this data captured and recorded? In some cases, a digital device does all the work, fast and easy, but in other cases, humans have to observe, collect, and enter the data. This can be both time-consuming and expensive. And since humans make mistakes, perhaps it's also inaccurate. Look at some of the metrics collected by your company. Consider this, what are the resources used to collect that data and is the cost of the data worth the information it provides? Second, metrics must be cheater proof. No matter what you may think, people aren't dumb.…