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Metrics that Matter

Published: August 25 2009, 09:53 AM
by Steve Romero

I just read a post titled "IT Metrics, Feast or Famine" http://bit.ly/19ogst. It was a nice post with some thoughtful insights. I especially liked the spirit of the post which in my opinion was to focus on metrics that matter. The post provided some great ideas about understanding the purpose of metrics, but they did not mention my favorite if not the ultimate reason to collect metrics - to make decisions.

I believe all data, metrics provided or otherwise, is used for the same purpose - to make decisions. I have argued all leaders provide value to their organizations in the exact same manner, when they make decisions. To me, decision-making is the essence of accomplishing anything. Which is why I continue to insist if you are collecting data and you don't know exactly what decision is associated with the data, stop collecting the data. It is a waste of time.

So for me, the simplest test of the validity and value of a metric is knowing and understanding the decision(s) associated with the metric. But since we are on the subject, here is a metrics attribute list that provides a good set of requirements for any metric:

  • Important - Reflects the ultimate goals and purpose of the organization
  • Controllable - Is something that employees can directly influence
  • Accurate - Reliably expresses what is being measured
  • Objective - Not subject to dispute
  • Easy - Not burdensome or expensive to obtain
  • Timely - Is available in time to make a difference
  • Comprehensible - Easily communicated and readily understood
  • Harmless - Does not induce dysfunctional behavior

Take a look at any of your metrics and see how they measure up to this list of attributes. The more attributes satisfied, the better the metric. But first and foremost, understand the decisions that must be made in your organization to realize success. Establish metrics that provide the data to make those decisions, and you will have metrics that matter.

 Steve Romero, IT Governance Evangelist

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By: Steve Romero
Steve Romero is the IT Governance Evangelist at CA Technologies, Inc. His mission is to help enterprises realize the full potential of their IT investments for strategic and competitive advantage. In this capacity, he acts as a strong advocate for the customer, speaking around the world to users, prospective...
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