What are metrics and why are they important?
Metrics help transform the vague requirements that a customer gives into a series of numbers that can be used to accurately map the process for its efficiency. Metrics tell us whether a process is good enough to meet the customer's requirements or whether it needs to be better.
Read rest of the answer. Considering this, how do you define good metrics?
- A good metric is comparative. Being able to compare a metric across time periods, groups of users, or competitors helps you understand which way things are moving.
- A good metric is understandable.
- A good metric is a ratio or a rate.
- A good metric changes the way you behave.
Also, what are examples of metrics? Top 10 Operational Metrics Examples
- Marketing: CPA (Cost-per-Acquisition)
- Human Resources: Absenteeism Rate.
- Human Resources: Overtime Hours.
- Sales: Lead-to-Opportunity Ratio.
- Sales: Lead Conversion Ratio.
- Logistics: Delivery Time.
- Logistics: Transportation Costs.
- IT: Average Handle Time.
Additionally, what is a KPI and why is it important?
KPIs are important to business objectives because they keep objectives at the forefront of decision making. It's essential that business objectives are well communicated across an organization, so when people know and are responsible for their own KPIs, it ensures that the business's overarching goals are top of mind.
How do you build metrics?
So here are the steps we take to create a simple graph:
- Identify the title of your metric.
- Identify why the measure is important for you to display.
- Identify the data needed to create the measure and where that data comes from.
- Identify the type of graph.
- Determine how often you will plot the data – monthly, weekly, etc.
