Sometime back on my other blog ( http://allthingsproductmanagement.info ) i had posted the following http://allthingsproductmanagement.info/stay-focused-it-is-all-about-focus-honey-part which was about using metrics to measure performance.
Today, metrics are everywhere, but the saddest thing is that metrics are defined at at every level – individual level, departmental level, product level. The biggest assumption here is that if the lower level metrics track good, then the organizational level metrics like profitability, ROI etc., must be good as well. But that is not always the case. In most cases, the metrics of one product / department works against the metrics of another product/ department.
Let us take the case of QA. Their metrics are heavily tilted towards number of defects/bugs identified during the various stages of a product development. But wait a minute!!! if one has to justify for the existence of QA, does it mean defects/bugs needs to be introduced in the product development process or should the objective must be to eliminate the introduction of defects in the product?
Also, what about other stake holders who view these metrics like investors, partners & customers. How can they quickly understand if the product or the organization is doing good and is on the right track, so that they can decide if they should stay invested (time, money, orders, partnership, future proof etc.,) or not.
Recently, i happen to visit a restaurant in Bangalore and in the waiting area, they had the following metrics displayed.
Very Simple. This is one metrics that can be understood by the customers who visit the restaurant, partners who supply materials, employees, management, investors etc., It gives everyone the confidence if the restaurant is doing good or not.
Being open and bold by revealing such numbers instils confidence in everyone’s mind. What more one wants to thrive?