metrics and measures

4imprint.com

Metr ics and Measures

© 2013 4imprint, Inc. All rights reserved

Hungry for change? Learn about metr ics and measures, the M&Ms of business. (Or, the f i rst course of change?)

“ When dealing with numerical data, approximately right is better

than precisely wrong.”

- Carl G. Thor

Picture this, you’re a CEO of a major corporation, and the board of

directors wants a presentation on business trends and the impact to

corporate performance. Here’s the catch: You can’t use numbers or

financial data.

Unless you have a crystal ball, this task would be impossible without

using metrics. You need data and financial descriptors that highlight

how the company is actually doing, and you need a process to analyze

the data. And that’s why you need measures, metrics and outcomes.

A measure is defined as an agreed upon concept of quantification.1 You might,

for example, evaluate the weather outside using a Fahrenheit scale (versus

Celsius). Some experts say there isn’t much difference between a measure and a

metric, but a metric is subtly different in the sense it adds a goal or performance

nuance to it. So you might say the freezing temperature is 32 degrees Fahrenheit,

and that would be a metric. The difference is minor, and for that reason, the two

terms are often used interchangeably. An outcome, on the other hand, refers

to a conclusion reached through a process of logical thinking. Or, simply put, an

outcome refers to how you use the data. In the case of 32 degrees Fahrenheit,

you will know to wear a down jacket!

If you’re one of those people that glaze over when someone starts talking about

metrics, measurements and outcomes, you’re not alone. At the mention of

measures and metrics, many minds fill with pages of numbers that may or may

not hold the secret to financial stability, future profits, or market potential.

It’s hard to know even where to start!

Let’s break it down and begin with a basic definition of what we mean by

metrics. Business metrics leverage numbers and facts that give insights to business

performance, finance and sales. Metrics help influence strategic planning because

1 “ What Is a KPI, Metric or Measure?” Klipfolio. N.p., n.d. Web. 29 May 2013. <http://www.klipfolio.com/blog/entry/305>.


they give leaders quantifiable indicators, rather than relying on a hunch or

gut feeling. Metrics also help decision makers and business leaders plan (and

achieve) long term goals and objectives, by providing a corporate road map of

performance and sales. Simply put, metrics help monitor progress toward goals

and expose inefficiencies across business functions. When implemented properly,

they provide valuable insight for change and improvement.

What do metr ics and measures capture?

The short answer is a lot. Metrics and measures can be applied to almost any

facet of your organization. For example, you can track how much time an

employee spends on a project for budgeting and resource management. Or

you can measure the costs associated with marketing a product. Maybe you

want to use data to uncover customer buying habits, satisfaction and loyalty.

Metrics can apply to stakeholders, customers, shareholders or employees.

They can focus inwardly on the performance of the company, or outwardly on

customer satisfaction and retention.

There’s no limit to what can be measured and tracked over time. However, to

be valuable, you need to make sense of the numbers and statistics and use them

to apply business value. They should link to the strategic objectives of the business

and tell you how the organization is really doing. When used effectively, metrics

can help improve productivity and enhance strategic planning. The key is to

identify measurements that are meaningful and apply them appropriately. Many

companies launch measurement initiatives without a defined strategy and that

can lead to confusion. Knowing what you want to measure and why is a critical,

yet difficult task.

Types of metr ics : funct ional versus bus iness specif ic

Before you get overwhelmed, you should gain a basic understanding of

the different types of metrics. Metrics can be categorized into the

following categories:

•Financial metrics

•Strategic metrics

•Operational metrics

•Performance metrics

•Project management metrics


Financial metrics are the most common types of measures and focus on overall

corporate performance. Two common financial measures are profits and loss.

Organizations track these numbers over time to assess the overall health of a

company. Decreases in corporate profits can indicate signs of trouble, while

increases may be an indicator of longer-term success.

Strategic metrics are similar to financial metrics, but link directly to the strategy

and goals of an organization. These metrics are often high-level and easy to

understand. Senior leaders and shareholders use these types of metrics to

evaluate customer retention, market share, and time to market.

Operational metrics measure the efficiency and effectiveness of an operation

or process. Think of operational metrics as those that measure the day-to-day

tactical operations of the business. These types of metrics provide insight on

how the business is actually running and provide a snapshot to monitor activity.

Manufacturing companies use operational metrics to determine inefficiencies

in the supply chain and to identify processes that can be improved. Call centers

might use operational metrics to track average calls per hour or the percentage

of successful customer interactions. The idea is to develop metrics that show how

your business is operating on a daily basis.

Performance metrics measure business contributions and performance across

customers, shareholders and employees. They can focus inwardly or outwardly, or

can evaluate performance against customer requirements and value. Examples of

performance metrics include customer satisfaction, productivity and quality.

Metrics are also used for project management to check time, cost, resources and

actions across a project plan and budget. These types of metrics help identify

areas for opportunity and improvement in project. They help determine where

employees spend the bulk of their time and can assist with resource allocation

and planning.

Not only are different metrics used for different business units, but you can

also categorize metrics by business functions or process improvements.2

Efficiency measures refer to how quickly things get done. In other words,

how many hours does it take to produce a product? What is the lead time

between order and delivery? Similarly, quality metrics measure tangible

data related to the quality of your product. For example, what is the rate

of returned merchandise? Or, on average, how many defects are produced

during manufacturing?

2 “ Small Business Systems.” Numbers Are the Language of Business Improvement! N.p., n.d. Web. 21 May 2013. <http://www.boxtheorygold.com/blog/bid/28325/Numbers-are-the-Language-of-Business-Improvement>


Customer satisfaction measures apply to the customer experience. These

measures focus on new customers, retention rates or customer complaints.

Anything that impacts customer satisfaction could be included in this category.

Employee measures track employee progress and professional development. For

example, what is your employee turnover rate? Or maybe you want to track the

number of hours spent on professional development and training each month?

These would fall under employee measures.

Finally, innovation and improvement measures track new products and

improvements across the corporation. For instance, what is the percent of the

corporate budget is spent on research and development (R&D)? What percentage

of sales is associated with new products? What improvements were implemented

that led to cost or time savings? Innovation metrics help analyze this type of data

and can be useful when implementing new processes and approaches.

Know what you’re captur ing and why

“You can’t manage what you don’t measure.”

-Peter Drucker

When it comes to metrics, you should know what you’re capturing, why, and

what you want to do with the data. True, you can’t manage what you don’t

measure, but you also can’t measure what you don’t define. The biggest

mistake organizations make is that they don’t have a defined measurement

strategy. They start collecting metrics that don’t mean anything, and waste

time trying to make sense of data they never needed in the first place. Data

overload is a common pitfall that can be avoided with planning.

Avoid the measurement abyss by developing a solid plan for collecting,

analyzing and reporting measures—we’ve outlined steps below to help. But,

there are a lot of other resources available:

• The Society for Human Resource Management (SHRM), for example,

has spreadsheets and calculators that will help you make sense of some

of your HR data.

http://www.shrm.org/templatestools/samples/metrics/Pages/default.aspx

• If you need basic training, the Association of Research Libraries provides

online training on basic measurement tools and methods.

http://www.arl.org/focus-areas/statistics-assessment

• In terms of literature, there’s a ton of research and studies that can

help you get started. A quick search on Amazon® directs you to a

number of resources, including a well-known book by David Parmenter,

“Key Performance Indicators (KPI): Developing, Implementing and

Using Winning KPIs.”


• Another one to consider is “Performance Dashboards: Measuring,

Monitoring and Managing your Business” by Wayne W. Eckerson.

• Of course, if you’re looking for an authority on metrics, Peter Drucker is

considered an expert in metric management and has published many books

over the years.

Measurement strategy best pract ices

In an article for Forbes, Justin Moore, CEO of Axient, provides sound advice for

those starting a new measurement strategy:

It’s critical to choose the right parameters. Measuring the wrong metrics

can do more damage than good. Getting too obsessed about the numbers

can lead to bad decisions and make you forget about the human element,

that you’re managing people, not robots. And not measuring on at least a

weekly basis can leave problems undiscovered until it’s too late to course-

correct. But, when you leverage metrics properly, they can be one of the

most powerful ways to propel your business to success.3

Measurement strategies are often directed by top leaders in the organization

and filtered down to business units. The top down approach is effective in

driving home the importance of a business strategy and helps engrain it into

the corporate culture. Sometimes, the CFO of an organization is in charge of

measurement strategies, while other companies place this task under human

resources or strategic planning committees. Who will drive your measurement

strategy largely depends on what you want to measure. Here’s a step-by-

step list of things to think about when developing and implementing a

measurement strategy.

Step 1. Define what you want to measure

• First, define metrics based on business goals and objectives that relate to

organizational strategy.4 In other words, what do you want to measure? To

define what you need to measure, ask key questions. Look for metrics that

have a business impact or will influence future performance. Here are some

questions you should ask to clarify your measurement strategy:

3 Network, CIO. “7 Tips On Building Your Business With Better Metrics.” Forbes. Forbes Magazine, 09 July 2012. Web. 17 May 2013. <http://www.forbes.com/sites/ciocentral/2012/07/09/7-tips-on-building-your-business-with-better-metrics/2/>.

4 “Making the Most of Metrics.” Information Management RSS. Nap., nod Web. 17 May 2013. <http://www.information-management.com/newsletters/metrics_strategic_operational_performance-10017214-1.html>.


•What top factors will impact the business in the next year?

•What are the revenue objectives, quarterly and annually?

• What aspects of the business (e.g. new customers, increased sales, reduced

time to market) will demonstrate success?

It’s also important to clearly define your metrics. Simply saying the goal will

be to measure customer satisfaction is too vague. You need to outline how you

will measure customer satisfaction. Is it the number of repeat customers? Or do

you measure customer satisfaction by the number of first resolution calls in the

call center? In short, metrics should be clearly defined so that almost anyone

in the organization can assess progress and engage in the right behaviors to

promote success.

Step 2: Choose metrics wisely

Second, it’s critical to implement and select metrics that promote desired

behaviors to achieve strategic results. As renowned metric expert, John H. Lingle,

once said: “You get what you measure. Measure the wrong thing and you get the

wrong behaviors.”5 Choose metrics wisely and measure outcomes that promote

the right behavior.

Using the call center example, say you want to measure customer satisfaction

by the number of customer first resolution calls. But you need to make sure

employees focus on quantity rather than quality. If the number of calls handled

is an indicator of success, customer service representatives may rush calls in

order to meet the goal. That could lower customer satisfaction in the long term.

Therefore, it’s imperative that you aren’t measuring something that will produce

undesirable behaviors that have far reaching consequences.

Step 3: Monitor, monitor and monitor

An effective measurement strategy reviews metrics at regular intervals.

You can’t assess progress without regular tracking. It is also critical to

create accountability and demonstrate a commitment to what you say

you are going to do.

Effective measuring strategies provide real-time feedback and are

easily captured and monitored. There are a number of measurement

tools and software applications that can help an organization extract

and analyze data. You can even use office applications like QuickBooks

5 “The Alternative Board Oshawa Blog.” : The Great Management by Numbers Debate. N.p., n.d. Web. 20 May 2013. <http://thealternativeboardoshawa.blogspot.com/2011/04/great-management-by-numbers-debate_3075.html>.


and Excel. It doesn’t have to be fancy, but it has to be consistent and real-time to

be effective. Successful organizations use dashboards or monthly business reviews

(MBRs) to track progress.

Step 4: Evaluate and adjust

Fourth, evaluate and adjust metrics as needed to address any changes to the

business or objectives. Any measurement strategy must be fluid. In other words,

a measurement strategy has to be able to adapt to changes in the business and

market. As priorities change, metrics change, too. Refining metrics every week,

month or quarter helps you stay on track and ensure measurement of the

right priorities. As noted by Axient’s CEO Justin Moore:

When you invest time and thought into setting, monitoring, sharing

and refining your metrics, you’ll be amazed at how much more in tune

you are to the state of your business, and how much more easily you

can make the critical decisions that can catapult your business’ success.6

Step 5: Communicate

Finally, continuously communicate and involve all levels of the business in the

measurement strategy. Capturing metrics is a fruitless effort if no one in your

company knows how they are doing on a regular basis. Metrics should be shared

across the organization, to promote transparency and accountability. Dashboards

are a good way to show weekly, monthly or quarterly progress, and should be

displayed in a place that employees reference frequently. Whether it’s a website

or a weekly meeting, progress against goals should be displayed regularly.

Business leaders in particular need to make sure they are promoting measurement

strategies. The ability to “walk the talk” and share results goes a long way in

showing employees that every level of the organization is committed to metrics

and achieving the outlined goals. Successful companies share results from the

top-down, even if they fall short of desired goals. This shows commitment and

transparency and ultimately creates a cultural buy-in for measurement strategies.

Measurement tools and approaches

Once you defined your measurement strategy (i.e. the nuts and bolts of the plan)

it’s time to consider what tools and methods might be helpful. You’ve probably

heard of KPIs, balanced scorecards and dashboards. But do you know what they

are and how to use them?

6 Network, CIO. “7 Tips On Building Your Business With Better Metrics.” Forbes. Forbes Magazine, 09 July 2012. Web. 17 May 2013. <http://www.forbes.com/sites/ciocentral/2012/07/09/7-tips-on-building-your-business-with-better-metrics/2/>.


A key performance indicator (KPI) is a performance-based metric that evaluates

the success of a defined activity. KPIs are applied to strategic or operational goals

and are defined in a way that is understandable, meaningful and measurable.

KPIs should clearly link to the strategic objectives of the organization in order to

help monitor business strategy.

For example, let’s say your company is focused on customer satisfaction, and

noticed a lot of complaints because of late deliveries. You might identify

deliveries made on time as a potential KPI to improve customer satisfaction.

The KPI would track the number of on-time deliveries and report these on a

regular basis.

A KPI differs depending on the business area of focus. Below is a sample list of

some the more common KPIs by business function:

Finance KPIs

•Percentage of payments that are late

•Percentage of invoices overdue when paid

•Average monetary value of overdue invoices

Purchasing KPIs

•Percentage of on-time deliveries

•Percentage of deliveries received on time

•Number of correct deliveries

Human Resources KPIs

•Employee retention rates

•Number of applications to job postings

• Average number of hours of training and development

provided to employees

•Percent of days lost to illness

Customer Service KPIs

•Number of customer satisfaction surveys completed

•Number of complaints received

•First call resolution rates

•New customer retention rates

To choose the right KPIs, you need a good understanding of what is important

to the organization. Many organizations use a balanced scorecard framework to

help identify valuable KPIs.


The Balanced Scorecard

A balanced scorecard is a strategic planning and management system that is

known for the ability to measure and manage corporate goals and outcomes.

It was introduced in the 1990s, and in 2013, it was listed as one of the top 10

management tools by Bain & Company®.7

As defined by the Balance Scorecard Institute, a balanced scorecard is used to

align business activities to the vision and strategy of the organization, improve

internal and external communications, and monitor organization performance

against strategic goals.8

The balanced scorecard was introduced by Drs. Kaplan and Norton

in response to some of the limitations of previous measurement

approaches. It provides a roadmap as to what companies

should measure in order to obtain a more “balanced” view

of the organization. It’s more than a measurement tool, it’s a

management tool that enables organization to translate vision

and strategy into action.

As Kaplan and Norton describe in their book, “The Balanced

Scorecard:”

The balanced scorecard retains traditional financial measures. But

financial measures tell the story of past events, an adequate story for

industrial age companies for which investments in long-term capabilities

and customer relationships were not critical for success. These financial

measures are inadequate, however, for guiding and evaluating the

journey that information age companies must make to create future

value through investment in customers, suppliers, employees, processes,

technology, and innovation.9

7 “Management Tools & Trends 2013 - Bain & Company - Publications.” Management Tools & Trends 2013 - Bain & Company - Publications. N.p., n.d. Web. 17 May 2013. <http://www.bain.com/publications/business-insights/management-tools-and-trends.aspx>.

8 “Balanced Scorecard Basics.” The Balanced Scorecard Institute. N.p., n.d. Web. <https://www.balancedscorecard.org/BSCResources/AbouttheBalancedScorecard/tabid/55/Default.aspx>

9 Robert S. Kaplan and David P. Norton, “Using the Balanced Scorecard as a Strategic Management System,” Harvard Business Review (January-February 1996): 76.


The following (Figure 1.) shows an example of a balanced scorecard. In the center

of a typical scorecard is the vision and strategy for the organization. The four

boxes represent the critical focus areas: financial, customer, learning and growth

and internal processes.

Figure 1. Balanced Scorecard Sample

As shown, balanced scorecard collects and analyzes metrics from four distinct

areas: learning and growth, business process, customer, and financial. The

corporate vision and strategy is the center of the scorecard, since everything that

happens should link back to and support the corporate mission. The idea is to

obtain a balance of metrics in these four categories to develop a more coherent

picture of the organization. Financial metrics, while important, are only one of

the pillars that can impact performance.

Since the introduction of the balanced scorecard in the 1990s, it has evolved to

include different variations. Most of the key elements remain intact, but recent

versions include strategic mapping and/or strategic linkage models. The principles

of the balanced scorecard and the four key areas, however, remain the same.

A number of technologies have also emerged that claim to help organizations

implement a balanced scorecard. However, it is debatable as to whether or not

software can uncover the basic principles required for the balanced scorecard.

According to the Balanced Scorecard Institute: “The balanced scorecard is not a

piece of software … [and] unfortunately, many people believe that implementing

software amounts to implementing a balanced scorecard.10 “ This is not to say

that technology isn’t helpful; once a scorecard is developed and implemented,

software solutions can be valuable ways to manage the approach.

10 ”Balanced Scorecard Basics.” The Balanced Scorecard Institute. N.p., n.d. Web. <https://www.balancedscorecard.org/BSCResources/AbouttheBalancedScorecard/tabid/55/Default.aspx>.


Overall, the balanced scorecard is the most popular measurement tool. According

to research conducted by the Gartner Group®, over 50 percent of large U.S. firms

adopted a balanced scorecard approach since 2002.11 However, this number might

be slightly misleading, since the term balanced scorecard is often linked to a

variety of measurement tools and methods. Other research indicates that about

a third of companies use a traditional balanced scorecard method, but only

about a fifth of all companies use the most up-to-date versions that include

strategy mapping.12

Dashboards and monthly business rev iews

Picture the dashboard in your car. Maybe you reference it to check your speed or

see if you’re almost out of gas. At the very least, you notice warning lights that

start blinking so you can avert a disaster.

Performance dashboards provide a similar service, only on a much larger scale for

corporations. A dashboard provides summarized data to show managers how fast

they are working towards their goals or provide alerts if the company is falling

short of targets. Dashboards are usually customized to report what needs

to be tracked most frequently.

Generally, corporate dashboards are easy to read and provide a real-time

user interface. They also provide a graphical presentation of the current

status and historical trends of organizational KPIs. It’s common to see

dashboards mirror traffic lights, and note whether something is red,

yellow, or green. A red light might indicate things are not going as they

should, while a green light indicates a company is hitting targets.

A manufacturing dashboard, for example, may show data related number of parts

manufactured or the number of failed quality inspections per hour. Similarly, a

dashboard in human resources might track KPIs related to employee recruitment

or retention.13

The dashboard isn’t about what you report as much as how you report it. In

other words, it should communicate progress at a glance, and be actionable and

immediate. It should summarize metrics quickly in a way that makes sense to

anyone that is reading it. It should be clear and concise, and serve as a report card

for your strategic plan and progress.

11 “Balanced Scorecard: How Many Companies Use This Tool?” Balanced Scorecard: How Many Companies Use This Tool? N.p., n.d. Web. 20 May 2013. <http://www.ap-institute.com/Balanced Scorecard How many companies use this tool.html>.

12 “Balanced Scorecard: How Many Companies Use This Tool?” Balanced Scorecard: How Many Companies Use This Tool? N.p., n.d. Web. 20 May 2013. <http://www.ap-institute.com/Balanced Scorecard How many companies use this tool.html>.

13 “Dashboard (business).” Wikipedia. Wikimedia Foundation, 05 Sept. 2013. Web. 20 May 2013. <http://en.wikipedia.org/wiki/Dashboard_(business)>.


Dashboards are often integrated into executive reporting methods. For example, you may have heard of the Monthly Business Review (MBR), which is a process that tracks progress against the strategic and operating plan. It is also an opportunity to make sure the organization stays on track and implements adjustments to the plan when needed. MBRs are a good way to communicate corporate performance and provide clarity and commitment when used effectively.

Generally, MBR reporting falls under the responsibility of the team in charge of a measurement or improvement process. However, a CEO often receives MBR data, so the report should be high level and concise. An MBR is reported during a standing meeting and follows a structured agenda to review performance, assess issues and opportunities and make adjustments to the plan. Typically, MBRs are conducted on a monthly basis, after the close of a prior month. A disciplined approach is critical to successful deployment of an MBR. It needs to be engrained into the culture of an organization as a standard method to monitor performance and to constructively address issues and opportunities.14

Whether you use a dashboard, MBR, or both, the objective is to report progress on a regular basis to key stakeholders. Tracking and reporting measures is not just a best practice, it’s a critical piece of your metric strategy. Simply put, if you don’t regularly evaluate progress, you’ll have no idea where you’re going. The metrics you collect are valuable only if you use tracking methods to monitor outcomes and results. Think of reporting as the follow through to your strategy, and stick with it over time.

Other metr ics def ined

The list of terms to define popular metrics and methods is long. Figure 2 offers

some of the more common measurement terms and their definitions.15

Figure 2. Measurement Terms and Definitions

14 “How to Conduct High-Value Monthly Business Reviews.” Aligned Action. N.p., n.d. Web. 30 May 2013. <http://www.alignedaction.com/2010/02/how-to-conduct-a-highvalue-monthly-business-review/>.

15


Metr ics examples

Examples of effect ive measurement strategies

If you’re looking for a company that excels in performance metrics, Lockheed

Martin Missiles and Fire Control is a good place to start. Winner of the 2012

Malcolm Baldrige National Quality Award, the company is known for excelling in

performance and operational measures to improve processes and productivity.

Lockheed Martin Missiles and Fire Control (MFC) use a nine-step Strategic

Planning and Execution System (SPES) to develop strategic and tactical

action plans using market and customer data. SPES integrates metrics, work

processes, and modeling to provide feedback for continuous learning.

Overall, the process promotes long-term sustainability and accountability data

for process improvement.

What, specifically, does SPES help the organization achieve? First, the company

realizes process efficiency as a result of a defined and consistent approach.

Supplier on-time delivery has been 100 percent since 2006, and overall supplier

Financial Measures

Sales or Revenue

Sales growth

Gross Margin or Profit

Profit or revenue per employee

Return on Investment (ROI)

Dividends

Cash flow

Inventory Turnover Ratio

Current Ratio

Customer Measures

Customer satisfaction

Customer retention

Customer referrals

Customer complaints

Response time per customer

Customer lifetime value

Customer acquisition rate

Number of customers

Customer service expense per customer

Process Measures

Average cost per transaction

On-time delivery

Average lead-time

Inventory turnover

Cycle time

Warranty claims

Frequency of returned purchases

Employee Learning and Growth Measures

Participation in professional or trade associations

Training investment per employee

Average years of service

Number of cross-trained employees

Absenteeism

Turnover rate

Employee satisfaction

Employee productivity

Training hours/certifications

Personal goal achievement

Timely completion of performance appraisals


quality has been nearly 100 percent since 2007.16 Cost savings is another

benefit of its strategy. Time reductions as a result of process and performance

improvement across business units led to an estimate savings of $225 million

annually. Combined with a 99.4 percent on time delivery rate, you’d call the

approach a success.

Other companies use measurement strategies to jump start savings or promote

revenue growth. Shat-R-Shield®, a 40-year old company that manufactures

packaging materials, first introduced a measurement strategy about 10 years ago.

The CEO at the time, Karen Ponce, felt strongly that the organization needed to

adopt a formalized measurement strategy to assist with strategic planning. As

CEO, Ponce believed it was her job to work on the business, not in the business.”17

In 2005, the CEO and senior management team attended a training

workshop where they learned about the balanced scorecard and

KPIs. The company began developing KPIs and a balanced scorecard

approach, and over the next three years, as Ponce described, “started

measuring things that were really important across the entire company.”

The organization continued to refine and expand KPIs and balanced

scorecard to include eight strategic objectives.

In a short time, the organization realized benefits from becoming a measurement

management business. For the first time in history, the organization tracked

how many dollars they earned for every dollar spent in sales and marketing on a

monthly basis. They also monitored cost per unit and identified opportunity for

improvements. By 2010, the company netted more income than in the history of

the company.

Karen regularly shares her lessons learned regarding using KPIs and a balanced

scorecard for success. As she notes:

Executives get so caught up in the day-to-day running of the business that

they don’t work on the business. As President of the company, I should

spend 80-90 percent of time working on the business. And implementing

a cascaded and aligned balanced scorecard strategic planning and

management system is time well spent working on the business because it

gives clear direction and guidance to those I entrust and empower to work

in the business.18

16 “Lockheed Martin Missiles and Fire Control.” Lockheed Martin Missiles and Fire Control. N.p., n.d. Web. 21 May 2013. <http://www.nist.gov/baldrige/award_recipients/lockheed-martin.cfm>.

17 Perry, Gail S. “A Balanced Scorecard Journey.” The Balanced Scorecard Institute. N.p., June-July 2011. Web. <http://www.balancedscorecard.org/LinkClick.aspx?fileticket=Qd7wk08IcWE%3D&tabid=57>.

18 Perry, Gail S. “A Balanced Scorecard Journey.” The Balanced Scorecard Institute. N.p., June-July 2011. Web. <http://www.balancedscorecard.org/LinkClick.aspx?fileticket=Qd7wk08IcWE%3D&tabid=57>.


4imprint serves more than 100,000 businesses with innovative promotional items throughout the United States,

Canada, United Kingdom and Ireland. Its product offerings include giveaways, business gifts, personalized gifts,

embroidered apparel, promotional pens, travel mugs, tote bags, water bottles, Post-it Notes, custom calendars,

and many other promotional items. For additional information, log on to www.4imprint.com.

There are an abundance of success stories among organizations that use (and

implement) effective measurement strategies. Most companies agree the recipe

for success includes planning, refinement, and ultimately, patience. Measurement

strategies aren’t implemented overnight. Collecting, planning and analyzing data

over time is critical to success.

Conclus ion

“ Without a standard there is no logical basis for making a decision or

taking action.”

-Joseph M. Juran

There’s a reason why organizations implement measurement strategies, it’s

because they work. They provide business and operational value, and can improve

your bottom line. When done correctly, a measurement strategy can yield

significant payoff and translate into serious cost savings. Whether your goal is to

attract new customers, grow sales, or increase your ROI, metrics can be the vehicle

to get you there.

Now think about what you would do if your CEO asked you to prepare a

presentation on business trends and corporate performance. Using a basic

understanding of metrics and measurement strategies, you could develop a

plan to track and implement critical KPIs across your business. You could even

explore balanced scorecard strategies and see if they can be applied to your

company. You’d probably develop a dashboard or an MBR to help report ongoing

results. Most importantly, you’re armed with the knowledge that metrics and

measurements can be the key to process improvement and corporate efficiency,

with a little effort and planning. So, what are you waiting for? If you’re hungry

for change, metrics and measures should be your first course.

metrics and measures

Documents