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Business metrics abbreviated
- 1. Business Metrics Primer Presented by Integral Computing Services, Inc. Spring 2011
- 2. Tool Box: Metrics Business Metrics Standards of measurement by which efficiency, performance, progress, or quality of a plan, process, or product can be assessed Source: BusinessDictionary.com Binary Scale Multi-dimensional Subjective LEVEL OF EFFORT CAPABILITY EXISTS FUNCTIONAL FIT USER INTERFACE It’s ok to include some 3 Completely Fulfills M H subjective metrics. In Money these cases, it’s 2 Partially Fulfills recommended that a L M forced-ranking system is employed 1 Does not Fulfill Time Pros: Pros: Pros: Pros: • Simple • Provides some level of • Can drive objectivity • Simple granularity but remains simple Cons: • Forces prioritization of metrics Cons: Cons: • Difficult to quantify complex Cons: • By the nature of the fact that concepts • Does not fit all situations they’re subjective, if overused, • Complex to create and, if not value and acceptance of the • Could require a lot of metrics • If not carefully crafted, can carefully crafted, can be evaluation can be questioned be created easily become too subjective difficult to interpret 2
- 3. Tool Box: Metrics Metrics must be quantifiable This is GOOD . . . This is BETTER . . . but still SUBJECTIVE Becomes OBJECTIVE Level of Effort Level of Effort >50k M H M H Money Money <50k L M L M <6 mos. >6mos. Time Time Business Impact Business Impact >$1M H M H M Revenue Revenue <$1M M L M L <6mos. >6 mos. Time to Realize Time to Realize 3
- 4. Tool Box: Metrics All things are not equal; Metrics must be weighted This is BETTER. . . This is BEST. . . but assumes PARITY Becomes OBJECTIVE and PRIORITIZED Level of Effort Level of Effort Weight >50k >50k M H M H Money Money 1 <50k <50k L M L M <6 mos. >6mos. <6 mos. >6mos. Time Time Business Impact Business Impact >$1M >$1M H M H M Revenue Revenue 3 <$1M <$1M M L M L WEIGHT <6 mos. >6mos.. <6mos. >6mos. 1 = Low Time to Realize Time to Realize 2 = Moderate 3 = High 4
- 5. Tool Box: Metrics Metrics can be combined . . . (weighting would be assigned to the output metric: Priority) Business Impact Quotient (Priority) >$1M H M Revenue High 1 1 2 <$1M M L Business Impact <6 mos. >6mos.. Time to Realize Business Impact Level of Effort Level of Effort Med 1 2 3 >50k M H Money Low 2 3 3 <50k L M Low Med High <6 mos. >6mos. Level of Effort Time PRIORITY Work will be prioritized based on the Business Impact 1 = High 2 = Moderate to Level of Effort Quotient: 3 = Low 5
- 6. Toolbox: Measure/Scorecard Using the defined metrics, perform the systems evaluation to generate the scorecard 6