Measurement of the Value of the Metrics

The National Institute of Standards and Technology (NIST) defines metrics as tools designed to facilitate decision-making and improve performance and accountability by collecting, analyzing, and reporting relevant performance-related data. Metrics are simply a standard or system of measurement. At Intraway, we use metrics to evaluate project performance and to make comparisons among them. Some of the metrics used are OTD (on-time delivery), NPS (Net Promoter Score- measure customer loyalty), and EPI (Effort performance indicator)

How to keep agility in customer service? How do you create an experience that’s easy to communicate? Find out here.

What is to measure?

It is the numerical quantitation of an object or event’s attributes, which can be used to compare with other objects or events.

Measure:

(A) way to ascertain or appraise value by comparing TI to a norm.

(B) To apply a metric.

Measurement: The act or process of assigning a number or category to an entity to describe that entity’s attribute. A figure, extent, or amount obtained by measuring.

Attribute: A measurable physical or abstract property of an entity.

Measurement of the value of the metrics

Metrics are an important tool to manage a company. But not all indicators are meaningful or valuable to the organization. They must have a specific set of features and characteristics to achieve their goal: keep the company living and growing.

Successful metrics are relevant.

Metrics are essential to measuring the success of the company. They have to be linked to a specific objective and contain a key element to achieve the company’s goals.

Metrics are practical

If there are too many metrics for one task or activity, employees cannot use them to solve problems or change patterns of behavior. Research shows that the right number of metrics used may vary between three to five. A higher number could overwhelm individuals whose performance is being measured.

Metrics allow people to undertake actions

For the metrics to be useful, a person should use them to guide their future actions. Individuals’ activities and functions should be measured so that people in charge could undertake concrete actions to change or improve the measured performance. 

Metrics should be informed

Metrics that are not informed are useless. To inform all the individuals in an organization of the metrics is to make them real. We must inform all the parties in a personalized way to explain and validate the relevance of the measurement.

All metrics have an owner

The team assigned the metrics is responsible for showing a level of performance according to the expectations. If they are well designed, they will teach people how to make decisions professionally. If an individual owns a metric, he will be able to improve future results.

How to keep agility in customer service? How do you create an experience that’s easy to communicate? Find out here.

You may also like

Thinking in start with Agile? Think in Kanban

Why We Need Metrics to Learn Faster

Performance, metrics, and statistics in transactionals systems – KPI (Key Performance Indicators)

Menu