The Importance Of Metrics

“There are no secrets to success. It is the secret of preparation, hard-work and learning from failure” – Colin Powell. A successful company or healthy corporation should have developed a unique strategy of managing the work both external and internal to accomplish current performance and long-term health. According to Building the healthy corporation of McKinsey Quarterly (2015), there are five competencies which business doer should attach special importance to: Strategy, Metrics, Communication, Leadership and Governance.

There is a trend existing inside the managing methods of most companies which is focusing on quarterly result and take the long-term value for granted. It is a useful technique but to be more efficiently, short term profit

Short-term success had been purchased at the expense of its underlying health. Strategy should seize prospect for long-term growth and avoid exposure to risks from organization blind spot or from any unwillingness to acknowledge external change, not fully intent on quarterly profit. Metrics is the science of measurement but in business world it means something different. A business metric is a quantifiable measure businesses use to track, monitor and assess the success or failure of various business processes. The main goal of measuring business metrics is to track cost management, but the overall point of employing them is to communicate a company 's progression toward certain long- and short-term objectives according to Ehrens (2015). Developing steady metrics allows executives to monitor a company’s performance and health. There are many metrics which the board thinks can bring out the best perfomances for the company but truthfully they are not all like that. It is a self-defeating to identify the most needed metrics to them. It can be Overhead cost, Sales revenue, anything which can fix the company’ area of

According to the article, metrics should take the nature relationship between external and internal parties as center. There are 3 ways of thinking: short, medium and long-term. While short term is only focusing on 1-3 years, medium and long-term covers the longer period that is likely more than 5 years. Within the given time, not only improving company’s earnings but also discover new area to expand the business. In every business communication plays an important role regardless of the criteria. You have to deal with the customers, to attract investors, to marketing about the company’s product,… All relates to make conversation. However, what should be mentioned here also is communication within the company itself, between