Metrics

A few days ago I was speaking with a friend, and she shared with some concern that lately all she was doing was working with metrics. I immediately asked, with great interest because I love measurement and evaluation, “What metrics are they? What are you looking for?”

Sometimes it is difficult to understand what metrics are, to know exactly which type of metric should be used, and to understand how the results should be applied. There are many definitions of the term, and they vary according to the business field using them. The study of metrics is very broad, and to have a clear framework of what they are, how they are applied, and their impact, the first thing to do is refer specifically to the industry and business area. Although I recognize their complexity, I would like to share about the topic in general terms, without associating metrics with any particular field or area; in other words, the common and basic elements.

Business metrics are understood as all those numerical values obtained from data collection that allow certain processes, activities, or actions to be quantified. Examples of metrics may include: number of people impacted, number of new clients, satisfaction level, percentage of completed processes, total sales, number of website visits, among many others. These measures alone do not provide much useful information; their usefulness is based on their contextualization according to certain criteria, rules, or standards that are established beforehand.

Contextualizing is the action of analyzing values through a specific environment with certain elements that characterize what is being evaluated or interpreted. This environment considers performance criteria, goals and objectives, the moment when the measured activity was executed, the purpose for which the data was collected, and other circumstances, both internal and external, that may have impacted the process through which the value was obtained. This rigorous data analysis gives meaning to the measures and, therefore, supports appropriate interpretations.

To make accurate interpretations, you must begin with the right data. Whether the data is correct depends on what you want to achieve. Therefore, when determining metrics, you must be able to clearly answer why and for what purpose. Once the data has been collected, it is important to observe it and let it speak; I always say, “numbers speak, and what they say depends on the hat worn by the person observing them.” The hats are the roles of the people analyzing and interpreting the data. The interpretation of a project manager will not necessarily be the same as that of an accrediting agent or the person who executed the task.

In summary, the usefulness of metrics lies in interpretation, meaning the ability to determine the meaning and scope of the data. Appropriate metrics, together with a group of analysts who are connected to the execution process and who understand the objectives being evaluated, will produce interpretations that make it possible to make valid and objective decisions about a given matter. For example, you can determine what was achieved, what should be maintained, modified, eliminated, and/or added. In short, you can conclude and act.

At LPMP, the numerical values of our projects and services are aimed at obtaining metrics for: 1) production, which are related to the functionality, complexity, and efficiency of work plan activities; 2) productivity, which focus on service quality and compliance with deliverables; and 3) service, which are client-oriented metrics aimed at the satisfaction criterion for the services provided as agreed.

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