From the course: Measuring Business Performance
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Three categories of performance measurement
From the course: Measuring Business Performance
Three categories of performance measurement
- Let's take a look at these three basketball players. Which of these players is the best player in the bunch? Most people choose player B. But, we need to remember a single metric can have flaws. So, how about if we give you more metrics? Sure. Some more data but every metric is measuring effectiveness. So yes, we now know how effective each player was at scoring, rebounding and blocking shots. But what else should you consider before making your decision? Perhaps you're now thinking about resources. How many minutes did this person play? How many shots did they take? Let's add in those few bits of data. These new metrics help us track efficiency. In other words, they tell us how well this player used these limited resources, minutes and shots. So now, who's the best player? Perhaps now you only feel more positive that player B is the best player of the bunch. But how about if I told you that you're wrong? What…
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