The Importance of Metrics

1524 Words4 Pages

The Importance of Metrics

Abstract

Establishing metrics is crucial to any organization, especially in technology related company projects. Metrics permit organizations to measure its performance against industry sectors to determine how well the company is doing. Furthermore, metrics allow organizations to evaluate and improve the effectiveness and efficiency of its processes. Metrics are designated in different categories. The categories identified in this document include output, in-process, and people. (Duris 2003) The organization must first determine exactly what the company is trying to accomplish or determine. Metrics are then identified based on what is relative to the subject matter. Finally, metrics are verified when tracking progress against previous records or a company given standards or goals.

Importance of Metrics

Establishing metrics is crucial to any organization, especially in technology related company projects. Metrics can be defined as a system of parameters or ways of quantitative and periodic assess of a process that is to be measured, along with procedures to carry out such measurement and the procedures for the interpretation of the assessment in the light of previous or comparable assessments. The results of the metrics can be used to record trends, efficiency, capital, and etcetera. Metrics permit organizations to measure its performance against industry sectors to determine how well the company is doing. Metrics allow organizations to optimize its productivity.

Categories of Metrics

Categories of metrics differ according to the type of company and its goals. An article written by Paul Germeraad (2003), describes in detail different segments of metrics that are used in measuring Research and Development processes which is a critical technical competency. Each category of metric is calculated or measured differently. The categories identified in the article Measuring R&D 2003 include output, in-process, and people.

Output metrics can come in tangible or intangible form.

Open Document