A business metric is a quantitative measure used to track and assess the status or performance of a specific business function.

The business metrics tracked depends on the areas of focus. For instance, Executive teams track big picture business metrics; Finance teams track revenue metrics; Marketing teams track campaign performance; Sales team track won opportunities.

 

 

Vadim Kotelnikov

Mediocre metrics tell you what's going on.
Better metrics tell you what's going on an why.
Best metrics tell you what's going on and why, and help you discover ways to make things radically better.

Vadim Kotelnikov, founder of 1000ventures - personal logo Vadim

Founder

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Peter Drucker advice

What gets measured gets done.

Peter
Drucker

 

Michael Dell advice

We decided to reward employees around a matrix of Return on Invested Capital (ROIC), and growth.

Michael Dell

Dell Inc..

 

Jack Welch advice business quotes

Simplicity applies to measurement also. Too often we measure everything and understand nothing.

Jack Welch

GE

 

 

Metrics vs. KPIs

Metrics are the units of measurement used in Key Performance Indicators (KPIs). The biggest difference between metrics and KPIs lies in context:

Business metrics track performance across a wide spectrum of business activities;

KPIs track the progress towards a specific goal.

  Effective KPIs

 

 

"A contemporary approach to measurement recognizes that modern business are complex systems. Measurement must be based on a careful through-through analysis of the business, one that links the objectives of the business to the things over which managers and front-line personnel have control."
~ Michael Hammer

 

Two Elements of a Measurement System

Balanced Scorecard

Ask Learning SWOT Questions

 

 

 

Innovation Metrics

Innovation metrics are to motivate managers,  leaders, and all employees across an organization to embrace innovation broadly and give it ongoing priority. Innovation metrics are applied to the three dimensions of the corporate innovation system strategic planning, process, and people.

 

 

Vadim Kotelnikov

Measure what you value, value your measurements, and analyze them to discover new ways to create a greater value.

Vadim Kotelnikov, founder of 1000ventures - personal logo Vadim

Founder

Business e-Coach   Innompic Games icon   Innoball