Introduction to the Twelve Rules for metrics
Metrics are measures of quantitative assessment commonly used for assessing, comparing, and tracking performance or production.
What is measured, can be managed, and can be improved. Metrics suggest whether the process is in order or needs external interference. They, therefore, form the basis of control in any organization and tell us whether a process is good enough or whether it needs to be better.
Project managers find metrics essential in leading and managing strategic projects of all kinds. Executives use them to analyze corporate finance and operational strategies. Analysts use them to form opinions and investment recommendations. Portfolio managers use metrics to guide their investing portfolios.
How do we set up the correct metric? How to create a set of comprehensive metrics to be used in ongoing evaluations? The twelve rules of metrics can help set goals and targets for KPI metrics that are integrated with business decisions.
The Twelve Rules for Metrics are:
Measure for a purpose
Shrink the unknown
Seek to improve
Delight all stakeholders
Distrust all numbers
Set imprecise targets
Own your metrics.
Don’t connect metrics to rewards.
Promote values and transparency.
Visualize and humanize.
Measure early and often.
Try something else.
Academics and corporate researchers have defined many industry metrics and methods that can help shape the building of KPIs and other metrics dashboards. My suggestion is to not apply metrics blindly to your business, use commonsense, set your goals, and follow the above rules.
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