Developing the Right Metrics Matters the Most

There are several ways a person could view an organization:

• As a collection of business processes (activities) that the business has to perform to meet its strategic objectives
• As a collection of IT applications that support the processes
• As a collection of people and suppliers who provide the resources necessary to achieve the organizational objectives
• As a collection of metrics or measures that describe the performance of the organization

Although each of these perspectives is equally real, only one is RIGHT in my opinion. Which one? METRICS, I say. Unless we boil our organizations into numbers and shared things that people can understand -- not complex and changing things like systems, processes, tools, and people -- can we really manage our organization as a program. I'm not making an argument for ACCOUNTING, per se, I'm talking about those facts and figures that tell us whether or not our business is being successful at achieving its objectives.

Therefore, it's my contention that a key part of the strategic planning and communications processes is to define and communicate about the key performance indicators (KPIs) of your business. KPIs are a bit of a cliche term but they're critical. The fundamental question we have to agree upon is, "How will we know that we are doing well?".

The more we develop this language of numbers and measurement, the more clear we will be together on our perception of what matters and how to allocate our resources and attention.