Metrics Development
Measures are the numbers or values collected through a data gathering process framework.
Metrics are calculated using the measures.
The Three Musketeers of Performance Measurement Heading link
What Is a Critical Success Factor?
A management term for an element that is necessary for Technology Solutions to achieve the organizational mission. Strategists should ask themselves ‘Why should the customers choose us?’ The answer is typically a critical success factor.
For instance, consider maintaining Customer Satisfaction as one of the CSFs of Technology Solutions, and a step to achieve this could be the “Installation of a call center to provide superior customer service” and indirectly, influencing acquiring new customers through customer satisfaction.
Key performance indicators (KPI) are a set of quantifiable metrics that an organization uses to gauge its performance over time. These metrics are used to determine a company’s progress in achieving its strategic and operational goals. KPIs help evaluate Technology Solutions’s performance against Technology Solutions’s strategic and operational goals. Before we define KPIs for any process, there should be a defined set of goals to measure the success of the process.
A common example for a KPI could be Net Profit. In any ‘for-profit’ organization, the major success factor is to increase their net profit. The Net Profit would answer the question: How much successful is a business compared to previous year, quarter, etc.
What is a Measure?
As mentioned in the Myth buster above, a measure is the data we collect about the Organizational Performance through a predefined data gathering process framework.
Framework for Metrics Development Heading link
Metrics are intended to assess progress toward stated goals. The Portfolio and Project Management Office (PPMO) notes that many strategic goals are difficult to measure and encourages Technology Solutions’ constituent groups to develop “specific, operational performance goals that align with strategic goals.” Performance measures are then created for these operational performance goals.