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Company managers can use the Internet as an information resource in looking for metrics examples that they can use for their performance evaluation systems. Check additional information about metrics examples.

If you plan to use metrics as part of your company's performance evaluation system, you would not have a difficult time looking for metrics examples online.

What exactly are metrics? What makes them indispensable to companies nowadays? Metrics are actually standard units of measure that are integrated into a system of performance parameters. These are quantitative in nature and periodically measure a person, process, institution, or event.

There are hundreds of metrics that managers can use as part of their evaluation systems of company operations. What is critical for these managers is to choose only those metrics that are relevant to them. There is a need to dispense of metrics that yield only useless information to the company. After selecting only the metrics that truly matter, the chosen measures are then considered as key performance indicators (KPIs) or critical success factors.

KPIs are defined as metrics, financial or non-financial, that organizations use to define and measure their performance relative to organizational goals. These KPIs can be monitored in real-time through business activity monitoring (BAM) or they could be integrated to the Business Intelligence techniques employed by the company.

KPIs may differ from one company to another, as companies have different aims or goals as well as business drivers. For example, an educational institution may have different sets of KPIs from that of retail companies that are more concerned about maintaining high profit margins.

For business organizations to be able to effectively identify their KPIs, they need to have pre-defined internal processes and clear performance requirements or goals for each of these processes. Moreover, business results should be measurable quantitatively or qualitatively so that they could be compared with performance standards. In addition, the company should have short-term flexibility in process and resource utilization so that it becomes relatively easy to implement changes at short notice.

KPIs can be grouped into different categories. Indicators that can be represented as numbers or numerical figures are called quantitative indicators. KPIs that can be used in current company processes are called practical indicators. Directional indicators, meanwhile, determines whether the organization is going in the right direction. Finally, actionable indicators are those that measure the extent of organizational control to effect operational changes. KPIs should also follow the SMART criteria. That is, they have to be specific, measurable, achievable, relevant or result-oriented, and time-bound.

While it may seem easy to introduce KPIs in businesses and organizations, this is not the case in reality. One of the primary obstacles in the use of KPIs is the fact that they can be expensive, impossible, and difficult to integrate into a company's present culture. Moreover, many company managers are not aware of the limitations in the use of metrics in performance evaluations.

In response to such challenges, companies now see the needed wisdom of having a more balanced perspective through the use of the Balanced Scorecard approach. With this management concept, companies not only focus on metrics from the financial perspective, but also on other perspectives, like customer, internal business process, and learning and growth. There should be several metrics examples for each perspective that can be obtained from online sources.

If you are interested in metrics examples, check this link to find out more about scorecard examples. Also, you can check other articles in BSC Examples category.



 

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