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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 770 |
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Processes are then designed to collect information relevant to these metrics and reduce it to numerical form for storage, display, and analysis. Decision makers examine the outcomes of various measured processes and strategies and track the results to guide the company and provide feedback.
So the value of metrics is in their ability to provide a factual basis for defining:
? Strategic feedback to show the present status of the organization from many perspectives for decision makers
? Diagnostic feedback into various processes to guide improvements on a continuous basis
? Trends in performance over time as the metrics are tracked
? Feedback around the measurement methods themselves, and which metrics should be tracked
? Quantitative inputs to forecasting methods and models for decision support systems
Management by Fact
The goal of making measurements is to permit managers to see their company more clearly -- from many perspectives -- and hence to make wiser long-term decisions...
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The Baldrige Criteria (1997) booklet reiterates this concept of fact-based management:
"Modern businesses depend upon measurement and analysis of performance. Measurements must derive from the company's strategy and provide critical data and information about key processes, outputs and results. Data and information needed for performance measurement and improvement are of many types, including: customer, product and service performance, operations, market, competitive comparisons, supplier, employee-related, and cost and financial...
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