Choosing the Right Performance Metrics

What gets measured gets done

It is often said in business that what is not measured cannot be managed. 

As managers, our role is to steer performance towards that required to deliver our organisation’s strategic goals.  We need a series of indicators that tell us where we are in that journey, help us understand the best way forward and correct under-performance.

We therefore need to be sure that we are:

• Measuring the right things; and
• Using those measures to take actions and make decisions that will help us achieve our performance targets.

What you choose to measure and monitor narrows your focus.  It defines how you look at your area of responsibility (your ‘operation’) and your priorities.  It drives day-to-day activity and influences your decision-making. 

It also communicates what is important to your people and will influence their actions and behaviours - particularly if they are linked to incentives.

Choose the wrong metrics and performance indicators and things will go wrong!

It is easy to be swamped by deluge of data, metrics and analysis: from customers, suppliers, the industry, from front line employees, senior executives and financial and non financial management information (‘MI’)…

To monitor the performance of our operation, one of our first tasks is to define what is the information that we need (periodically) that tells us:

• What is significant?
• When we need to take action and when we need to make a decision in order to correct or improve performance.

Join and learn how to select the right performance metrics