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Company Goal And Objectives In Metric Development

Jan 16, 2008
Metrics are important strategies for companies. These are gauges by which a company or institution measure its success. It can range from customer turnover and sales to almost anything else. Metrics should be developed and custom made for a certain industry. No two industries, even companies, have the same metric system to follow in order to measure success and progress. Metrics are important in order to keep a company moving forward. It gives company leaders a chance to see in what aspect their institution needs to improve on. Below are some categories that need to be considered when developing customized metrics for a certain institution.

Company goals and objective effectively state what a company does; it is the main objective value that a company should be gauged against. It gives the public a window on how they operate and what that certain institution means to achieve. The development of metrics should be gauged on this aspect of the company. Here are a few examples in which a company's goals and objectives directly affect their Metrics Development.

Company A is an institution that aims to export as much fresh produce as they can in a year. That is why the appropriate metric for this company is a numerical computation of the amount of fresh produce that they were able to export in a certain year. The results of this metric can be quantified into charts and graphs that plot the company's output from year to year. This will give them a quick look on how they have fared over the years.

Another example that shows the Company's goals and objectives being considered in metric development is as follows: Company B is a company that values customer and employee satisfaction above all other variants. This data means that a good Metric to be developed for them is one that measures the degree of customer and employee satisfaction. This is sometime tricky because the degree of satisfaction is a quantitative value. In order to properly measure something it has to be converted into qualitative or numerical figures. This is effectively achieved by assigning numbers that correspond to certain quantitative qualities.

The size and target market of a company can also be effectively gauged with the use of well constructed company goal and objectives statement. The size and target market also directly affect the Metrics Development for that institution. It is erroneous to say that Metrics Development for a small company with a smaller target market is easier than it is for bigger corporations. Sometimes, the more specific company goals and objectives are the more detailed will be the Metrics Developed for that institution.

Now that we have established the importance of a company's goal and objectives in the development of specific metrics, we can therefore conclude that no Metrics Development task should be undertaken without first reviewing what a company stands for and what their goals and objectives are. If not, then the developed metrics may be rendered ineffective to gauge the company's performance.
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