They also need to be standardized, with data being collected in exactly the same way across single or multiple departments, facilities and offices, nationally or internationally. Fudging metrics benefits no one. To deliver real progress, everyone involved with the metric needs to be completely honest.
This may be a difficult pill to swallow because it can raise questions about why the business is not performing as well as had been thought. Measure and share the results It may seem a little obvious, but a large number of companies go to the trouble of designing metrics and buying expensive tools, and then do not actually do very much with the results. Usually it is because too many metrics have been set. Use metrics to learn from others. Never hesitate to contact another person in the company and ask how they are progressing.
As for costs, they may include those associated with the design, development and maintenance of a project, resource cost, travel expenses, and overhead and training costs. Michael Krypel. To measure productivity, you first have to know what it is. Ethan M. We do user research to make products work better, guide leadership decision-making, and help teams make better decisions.
If the organization has multiple sites or divisions, leaders should set up regular meetings to review progress, share experiences and successes, and discuss problems. The process is needed because businesses evolve and changes will surface as time goes by. Make sure the metrics still measure what they intended to measure.
After all, if the metrics are out of date, then what is the purpose of retaining them? The aim of a setting metrics is to improve the business, so set targets that challenge the company.
It will provide more value than focusing on something that is easily achievable or is already being achieved. You must be logged in to post a comment. This creates risk for supply chain design as a sustainable function.
Below are some ways to think about developing metrics in supply chain design. Use the term metrics for success when thinking about a scorecard for design.
If you are hitting on your targets — you should not only drive significant value to the larger organization but also achieve success as a design organization. I typically break these metrics down into three core categories:. The value metrics are probably one of the most obvious things to measure as a design organization.
This could cover various areas such as:. Additionally, make note of major corporate initiatives where design work helps influence or support the effort.
As I mentioned earlier an important aspect to the value metrics is to focus on value realization in addition to value identified. Contrary to popular belief, total revenue is often NOT the most important metric for sales.
First, while revenue is fairly easily measurable and correlated with positive business performance, it's not predictive of future revenue. Most metrics reflect past performance. This is particularly true of financials.
For instance, revenue tells you how many deals your sales team closed - last quarter. It doesn't tell you anything about what might happen in the coming quarter. Second, revenue is not totally isolated to the performance of the sales group.
Sales teams are often impacted by conditions outside of their control, such as the quality of product, economic conditions, etc. If the product performs poorly, even the best salesperson might not be able to sell much. Conversely, a great product might rack up huge revenue even with a mediocre sales group.
Because low revenue doesn't necessarily correlate to a bad team or poor effort, it's not a great sales metric. In my experience the best metric for sales is the accuracy of revenue forecasts. As any good salesperson knows, making a sale is a process.