Metrics for all of us!

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Metrics for all of us!

Metrics has been used by for centuries and chances are great that you are using a type of metrics to measure your performance today. What is metrics and how can anyone develop and use metrics to their own and their organization's full benefit?

By Lars G. Harrison

Do you have goals? Of course you do. Do you ever measure whether or not those goals are met or not? Most likely you do? Chance are likely that you have heard someone mentioning "metrics" in your organization. Well, metrics is not something mystical or an European decimal system of weights and measurements. Metrics deals with measurements that are used to determine the progress toward meeting certain goals. It quantifiable answers the question whether or not the goal has been met. Every person with goals has used a measuring system to determine if his/her goal was met and what steps needed to take to continue to reach that goal. Metrics is used by organizations to (determine) measure which business and organizational goals are appropriate for the organization, given its particular mission.
Why should you use metrics?
Whether you call it metrics or not, every individual and organization need to measure their performance or operational effectiveness, in all areas of their business, toward meeting the goals they have set in order to continue to improve. Well, it is said that "what you can't measure, you can't manage." Why set goals, if you don't intend to monitor and manage your progress in achieving them? Measuring your progress toward fulfilling your goals is a must for any individual or organizational goals. With metrics you can measure and track the effectiveness of any types of goals. Using metrics will enhance your performance.
What are the types of goals that can be measured?
Typically organizations measure business results and operational performance by analyzing customer service satisfaction, financial and market (product and services) performance, operational effectiveness, suppliers and other partners, quality related, and human resources, or other goals associated with improvement. Individuals can use metrics in analyzing goals related to finance, education, partnership (or spousal relationship--be careful with this one), spiritual, career, etc. If a goal requires a length of time and can be measured, you can develop a metrics program for it.
Developing a Metrics Development program
Once you have defined the goals you want to measure and assured that they are vital to performance, you should set up a simple plan for measuring your progress. Some corporations use Walter A. Shewart’s Cycle for Learning and Improvement as a base for an improvement program. The Plan-Do-Check-Act Cycle is a four-part process that provides a simple methodology for quality improvement. You set up a plan for the carrying out the improvement; carry out the plan by doing it, you check or observe the effects of the plan, and then act on the results that are learned from your observation. If this seems complicated, you may want to adopt a different philosophy of measuring your goals by answer these questions:

What is the goal and why should I measure it?
Where do I find data about the goal and its progress?
How can I measure it?
How well am I doing? How does it measure up against my timeline or quantifiable desired goal? Create a scorecard to measure and analyze your progress.
What actions can I take to fulfill or improve the performance or operational effectiveness of the goal? Develop an action plan to accomplish the desired change.

For individuals, making a scorecard and trends analysis or a nice chart depicting the current metric level of the goal may not be necessary. What is important though, is to write down the goal and track the progress of the goal. The greatest obstacle is won when you have correctly determined what your goal is and why it is important to measure it. Remember the goal should be measurable. Stating that "We want to increase customer satisfaction" is not a measurable goal. To state it "We want to increase customer satisfaction each year and arrive at 95% customer satisfaction by year 2000" is a measurable goal. Then ask, why should we? If "because we..." is answered correctly, then develop a program to improve customer satisfaction.
There are more factors involved in developing metrics that can be covered through a consultation with a reputable consulting company. We encourage all of you to begin measuring your progress and take charge of creating your future.

LLars G. Harrison can be reached at lars_harrison@yahoo.com.