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Posts Tagged ‘Metric’

IBM recently announced the creation of a consulting services group that focuses on helping customers make better and faster business decisions, presumably using data to make decisions instead of instinct or “gut feel”.  This is not a new concept, although I do agree with the concept for the most part.  There are many business changes that can be made to save the company money and good metrics help you to realize those savings.  Things like reduced calls to a call center, call time reduction, and reduced truck rolls can easily be measured and improvements result in cost savings.  Using metrics to make decisions is just smart management and today’s data warehousing and CRM systems give us more and more data to analyze.  But let’s not forget the variable that never changes, the human factor.  Our employees, our customers, and our vendors are all human and because of that, there is an additional variable that is difficult to measure.  Things like customer satisfaction can be measured in surveys or sales volumes, but it is difficult to really know how loyal your customers are to your company.  Just because they are happy with their service, does not mean that they won’t jump to a competitor for the right promotion.  Can you really measure the overall satisfaction of employees?  Some employees are hesitant to be blunt  and you usually hear complaints from a few vocal employees, not the general population.  How about applying metrics to Project Management.  Sure, you can measure whether or not you met a deliverable date, but if the dates are renegotiated with a customer and the customer is happy with the change, how do you categorize that data point?  You missed the date, which is bad, but the customer is not upset about it, which is good.  My point is that some things in business can be easily measured and we should take advantage of that data.  Others are more difficult to measure and trying to shoe-horn a one-size-fits-all solution to all problems can be problem in itself.  Some things are best measured with experience.

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