Business leaders who are guided by Performance Metrics are able to make decisions knowing the impact they will have upon the business.
The metrics that matter are those linked directly to value in the business. I.e. an uptick in the metric indicates an improvement in part of the business that will help to create additional value.
Which metrics to use? Some might be obvious. E.g. if you know that new customers are attracted by your reputation for service quality, you will want metrics that track service quality.
Others might be less obvious. It is often the case that several factors influence customer behaviour – with some being more important than others. They may be identifiable only through an analysis of service histories taken from across the business – and perhaps through Econometric Modelling that reveals relationships between, say, customer spend and the way that services are delivered.
There are 3 steps in developing a dashboard that reports your critical performance metrics:
