A Better Way to Measure
Does this process sound familiar?
- Collect data we have easy access to.
- Crunch metrics based on that.
- Use that to update last year’s report.
But wait! That’s not only a static process that looks at a single point in time—it’s completely backwards.Measure What You Need, Not Just What You Can
There’s a better way to measure that’s dynamic and forward-looking.
Start by identifying an important business need: What do you really need to know? Then, using that as a guide, select tasks that impact that need. The logical next step is to identify which measurements address those specific tasks. That’s the only way to create meaningful, useful metrics.
Here’s an example:
- Business need: Reduce the time of processing a payment
- Tasks that touch that business need: Payment receipt; invoice matching; discrepancy resolution; deposit
- Metrics that apply: Hours or days to execute each step; overall time from payment receipt to deposit
Pinpointing the metrics for the various steps can help you find any choke points that are slowing the overall process down.Effective ...