The statistics most often used to evaluate performance, such as sales, may have only a flimsy connection to true success.
More useful statistics persist over time and show cause and effect.
Choosing the right metrics is a four-step process:
- Define your objective.
- Develop a way to measure value.
- Identify what employees need to do, specifically, to reach the objective.
- Revisit the measures you choose on a regular basis to make sure they link employee activities with the objective.
— Adapted from “The True Measures of Success,” Michael Mauboussin, Harvard Business Review.