MONITORING AND METRICS

FOR INFRASTRUCTURE AND

BUSINESS PROCESSES
WEEK 5
Abonador, Janno
Daos, Gabriel
Oblepias, Chesca
Sze, Boaz

Choosing Metrics

ch company has its own distinct set of metrics depending on its individu
business strategy and goals.

set of metrics will vary by the type of industry the company is part of.
4 COMMON SUCCESS METRICS:

Ability to bring a design to market

Client/Customer Satisfaction
Profitability
How the team feels about the work completed

Metrics for Business

Processes
Every businesses at their core are
supported by process frameworks
Business Processes are required to
be optimized
Metrics are used as measure.

How to Create Metrics for Business

Processes
Firstly
Indicate what process needs to be
measured

Then
Ask the following questions:
1. How are you doing?
2. How do you know?
3. Where must you improve?

How are you doing?

Check responses.
Get responses from different
personnel involved with the process
Divide responses to groupings.
Measure level of importance.

How Do You Know?

Question the responses
Get their opinions on what could be improved
or their overall comments about the process
Consider FUD
F = Forcing them to accept measures you think
will work best causes fear
U = Uncertainty may reveal negative
consequences such as accuracy issues
D = Doubt that management will respond in a
positive, not punitive way

Where Must You Improve

Use Key Performance Indicators (KPI)
in order to know where to improve
Also consider FACE
F = Fast
A = Accurate
C = Cost Effective
E = Easy

KPI Metric
Key Performance Indicators Metrics that can be seen in dashboards.
2 kinds of KPIs
Leading - measures key drives of business value.
Lagging measures future outcomes.
LEADING INDICATORS LAGGING INDICATORS
(Value Drivers)
(Outcomes)
Number of clients that
sales people meet face
to face each week.

Sales Revenue

Complex repairs
completed successfully
during the first call or
visit

Customer Satisfaction

Metrics for Business

Processes
A metric is a system or standard of measurement
while a business metric is a system or standard of
measurement used to engage in organization
success.
Efficiency, productivity, sales or any other
measurable elements are all under business
metrics.
A business metric involves addressing investors,
customers, employees and executives. Every area
of business can be measured whether it may be
sales, program statistics etc. which leads to new
opportunities, ideas and leads.

What to measure?
You need to choose the right
elements to measure.
Measuring against your competition
cannot be more harmful than helpful.
Should compare results against
yourself (How good were you last
year? What were the results last
month? Is it any better?)

Key Performance Metrics to

Successful Business Operations
Customer Satisfaction Score:
- knowing how well the organization/function is serving its
customers
- Focus on areas that needs more attention

Employee Satisfaction Score

- Employee Satisfaction Surveys
- provide a healthy environment where values and cooperation
in valued.
- Taking care of employees are also important for the
company.

Cash Flowlife blood of the business

Gross Margin
best indicator of a businesss
health
- The higher the gross margin, the
higher the chances that you are on
the right track in every operational
aspect.

Program/Infrastructure
Metrics

Most organizations struggle with performance management.

Common errors include:

-Measuring too much
-Measuring not enough
-Measuring the wrong thing
-Measuring that are not aligned to strategic objectives

Thus, an effective use of METRICS should be understand & determin

Program/Infrastructure
Metrics

Metric - a quantitative measure with an agreed-upon

dimension.
ex: ROI of 14%
Market Growth of 40%
Deliverable Efficiency to schedule of 98%

Measurement - a quantification process, calculation or algorithm.

- process of measuring the metrics.

Indicator - a prescribed state to notify, alarm, or warn a condition.

ex: Safety Stock
Budget Allocation

Program/Infrastructure
Metrics

overnance Metrics and Measure includes:

Planning: priority setting, funding allocation

Execution: process tracking, early warning indication

Completion: assessment of deliverables, benefits

Results Evaluation: closed loop correction, strategy assessment

References:

Wiley, J. Program Management for Improved Business Results,

Second Edition. New Jersey, Canada. 2014
Eckerson, W. Performance Dashboards: Measuring, Monitoring and
Managing Your Business. New Jersey, Canada. 2008