Metrics Paper

  

Introduction:

· Write a brief description of what metrics are. 

o Here it would be good to include some sort of text/source definition. 

o It would be good to note some big picture use of metrics here as well. 

§ This can include notes including; metrics allow business leaders to make decisions based on data instead of hunches.

§ Data driven decisions are generally more accurate, helps find negative trends to correct or positive trends to exploit, etc. 

1- What are the Most Important Metrics For OM

· Within this section you will call out what metrics you find as the most important.  

o What are the metrics?

o The big call out here is that metrics are specific measurements.  

§ Customer service is not a metric. 

· For customer service, a very common metric is average speed of answer for phone calls

§ Planet (if 3p focus) is not a metric.  

· For profit a very common metric is COGs (cost of goods sold).

§ Employee empowerment is not a metric.  

· For people focus, a common metric is annual employee turnover.

o You want to call out metrics that monitor these types of components. 

2-Why are these Metrics the Most Important

· Within this section you will take your above list, and describe why they are important measurement.  

o For the ASA call out; 

§ Average speed of answer is an important customer service metric to help show how well we are able to handle our customer calls.  

§ This is important as customer’s value prompt service.  

o For the turnover call out; 

§ Employee turnover is an important measure because it shows how satisfied employees are with the company.  

§ This is a good indicator of empowerment.  

§ High turnover can impact quality, costs, etc.  Essentially, why are the metrics in #1 important?  

o For COGs, this is a good profitability measure as the cost needs to be far below the retail price. 

§ Most of these notes should link the metric to some sort of gauge of the health of the organization.

o Why these metrics?

3-Where Do You Get The Data

§ Within this section, you will explain how you pull the data for the above.  

o For ASA; 

§ Data for the ASA would be pulled from the company's IVR platform.  This platform should generate basic call center data.  

o For turnover; 

§ Most HR departments track this metric and should be able to provide as needed.  

o For COGs;

§  The OM should be tracking this as part of the BOM input to the MRP. 

o Whatever the metric, the number has to come from somewhere. For financial data, this can often be taken from a corporation’s 10K. 

o If you are looking for customer or employee input, surveys can be a good source. 

o The main component here, describe how the data will be generated. 

o Where does the metric come from?

4-How Do You Analyze

§ The above noted data all has to be reviewed in some sort of context. 

o Within this section you should describe how the data is analyzed.  

§ Benchmarking against industry averages, or best in class, is almost always a good way to analyze data.  

§ For ASA; 

· This metric could be compared to customer expectations that could be gathered by looking at abandon rates and through customer feedback. 

· Reviewing trending for MoM (month over month) or YoY (year over year) changes can be a powerful way to compare data points. 

· The topic here, summarize considerations when looking at this metric. 

o What context should be used when reviewing this metric?

Provide a reference page.