Metrics and Key Performance Indicators

  • Purpose
    • Measuring the perfomance of solutions, components and other issues of interest to stakeholders
  • Description
    • Metric: a quantifiable level indicator to measure progress
    • Indicator: identifies specific numerical measure that represents the degree of progress toward achieving a goal, objective, output or activity
    • Key performance indicator: Measure the progress toward a goal or strategic objective
    • Report: Process to inform the parts about the metrics of the indicators in specified formats and rangers
    • The main components are:
      • Monitoring – Continuous data collection to determine how well a solution was implemented x expected results
      • Evaluation – Systematic judgment, determine status and effectiveness of the solution, identify how to improve solution
  • Elements
    1. Indicators
      • Identifies a specific numerial measure for meta, impact, output, activity or input. Five characteristics:
        • Clear / Relevant / Economic / Adequate / Quantifiable
          • Interests of the stakeholder are also important
      • Weaknesses can be identified in some indicators
      • Consider the source, method, and responsible for the collection and cost
    2. Metrics
      • Quantifiable levels of indicators that are measured at a specific point in time
        • Target metric – goal to be achieved over a period of time
      • Important to clearly understand the baseline starting point, the resources devoted to the improvement of the factors and issues covered by the indicator / political concerns
      • Can be a specific point or range limit
    3. Structure
      • Monitoring and evaluation system requires procedure of:
        • Collection – Units of analysis, sampling and instruments
        • Analysis – Conducting analysis and consumer data
        • Report – Models, addresses, frequency and methods
      • Key factors for quality assessment:
        • Reliability – Stability and consistency of data collection
        • Validity – Clear data and direct measurement of perfomance
        • Opportunity – Adequacy of the frequency and latency data
    4. Reports
      • Compare the base-line current metrics and and target metrics, with calculations of the differences presented in absolute and relative terms
      • Visual presentations are more effective than tables, when supported by a text to explain the qualitative data
  • Usage Considerations
    1. Advantages
      • Allows stakeholders to understand how the solution meets the goal and how effective were the inputs and activities for the development of output / solution
      • Facilitate organizational alignment linking goals to objectives, support solutions, key tasks and resources
    2. Disadvantages
      • Collecting too much data than necessary will result in unnecessary expenses in the collection, analysis and reporting
      • Program metrics bureaucratic failure to collect data without generating reports useful
      • When used to assess performance, those involved tend to act to improve their performance on these metrics, and decay into other activities

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