From the course: Measuring Business Performance
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Characteristic of a good metric
From the course: Measuring Business Performance
Characteristic of a good metric
- A metric is what we use to measure. Grades, points per game, units manufactured per hour. These are all examples of metrics. These metrics are often what we use to make decisions. Do we need to study more? Should this player be in the game? Is our factory meeting production goals? Companies measure hundreds of things, in other words, companies often have hundreds of metrics but not all metrics are good. Some may not provide valuable information. Others might actually be misleading. As a manager, it's your job to identify the most important and helpful metrics among the hundreds being tracked and sometimes you may need to develop new metrics. So what are the characteristics of a good metric? As an exercise, I want you to pick a few metrics used at your company, your school, in your favorite sport or in popular culture. What are the numbers people love to track? Let's see if they are good metrics. First, is your metric…
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