A business metric is a quantifiable measure businesses use to track, monitor and assess the success or failure of various business processes. The main goal of measuring business metrics is to track cost management, but the overall point of employing them is to communicate a company's progression toward certain long- and short-term objectives.Consideration for business metrics:
- Should be a Rate or a Ratio, mere numbers/quantities do not provide a sense of good, bad or better performance.
- Should be a comparison over a period of time, or with other sites, segments.
- Should be easily understandable, complex metrics create misunderstandings.
- Should lead to change in behavior towards better performance.
One that matters -- One Metric That Matters (OMTM):
Identify the most important Metric to measure the overall health of the department.
- Not a One Size Fits All metric. Every department, organization and situation will influence what is most important at the point in time.
- Once selected it is not set in stone and is subject to change based n prevalent conditions.
- Not a set it and forget it metric. Continuous monitoring and tweaking required.
- Not a Carte Blanche to forget all other lesser important metrics.
