Which Principles Lead To Successful Realization of Metrics?

Posted by SharonEvans on June 30th, 2013

 In an era when economic instability is the order of the day and there is no surety as to what the future has in store, one factor that can be trusted pertains to metrics. Like the way in which a wise captain steers the ship through the rough seas to reach safe shores, a shrewd management relies on KPI to tide over difficult times. Anyone who has studied the KPI definition closely will realize that this concept is resilient enough to withstand the test of times. Thus, if the management feels that the need of the hour is to change direction, then it can be implemented without any drastic steps being taken.

There are times when even after the application of metrics, success and prosperity seem as elusive and distant as ever. This is attributed to the fact that something might have been lacking in the implementation of indicators or the KPI definition may not have been understood fully. As a result, everyone including the management loses sight of the goal and the organization faces a setback in terms of daily performance as also over all revenue and profits. One of the ways of preventing plans from going completely haywire entails application of certain principles.

Establishing connection with the big picture is one of the foremost principles while handling metrics and this entails careful selection of programs that would successively contribute towards the bigger objective. If a particular goal is treated like a waterfall, the amount of responsibility towards its realization would flow in the opposite direction. This implies that while work is handed downwards responsibility of its completion increases in the upward direction. As per this cascading formula, knowledge of KPI definition should be understood well at the top management.

How can metrics be handled so that they can contribute towards progress in a proactive manner? To achieve this it is the indicators at the ground level that need to be focused upon so that these can then jointly contribute towards success at the top. As per the KPI definition, a metric is meant to measure the exact time frame of any activity and in case the time taken is more then it is indicative of a problem at hand. Therefore, the next step should be to identify the root cause of the problem, validate its existence and merge it with the final momentum of growth as also the ultimate vision.

Metrics should be made as predictable as possible because only when the particular metric is predictive that it can be expected to provide accurate results. Some of the yardsticks that help to improve the predictive nature of a metric entail identifying the input and crucial junctures, resources used and tools for checking progress. From the root causes it is imperative to distinguish between inputs and crucial points while the KPI definition also states the importance of human factor. Tools used for monitoring progress comprise of different types of charts and sheets.

Once the momentum towards growth is established, the next objective of metrics is to sustain the pace so that it soon becomes normal. This is the stage at which a particular action plan in applied and some of the plans that are universally used are balanced scorecard, Tashiro Chart and Flag Chart. Amongst these it is the balanced scorecard that conforms as closely as possible to the KPI definition because it is practically suitable to the various layers of hierarchy in an organization. Tashiro Chart is meant to depict the trend while the Flag Chart has been designed to provide a panoramic view.

One of the best ways of governing metrics entails learning about a few important principles that can impact performance and achievement of objectives. These principles are in keeping with KPI definition that unites the top management with workers who work in the field so that everyone has a hand in the accomplishment of goals.