If you are an analyst, or an analytics leader in your organization, a large part of your role likely consists of establishing the metrics, targets, and overall performance measurement strategy for your organization.
The basic practice is pretty straightforward: come up with a few (or a bunch of) KPIs, calculate the actuals, hopefully compare them to something, come to a conclusion, and if you’re lucky, take action.
So why does performance measurement become such a complicated topic for many organizations? How do metric sets and benchmarks get so lost in translation? Why are certain outcomes a not-so-pleasant surprise?
Oftentimes, it’s because — frankly — businesses are measuring their performance incorrectly.
I’m not talking about the particular metrics you choose. Marketing inquiries, net new opportunities, churn, planned vs. forecasted pipeline, year-over-year revenue growth, attrition, and all the industry standards need not be abandoned. I’m not suggesting you reinvent any wheels. Instead, I’m talking about how you measure performance, not whatyou measure.
Let’s consider the most common pitfalls of performance measurement and how you can avoid them:
Finally, a bonus tip. Words to live by: performance measurement is not about quantity only, but also quality. At a minimum, be sure that you’re measuring growth of the right metric.
These are some of the best practices we employ in our performance measurement strategy at Qlik. Want to learn about others? There’s an app for that! Just kidding, but there is a solution. Sign up for Qlik Insights, our quarterly newsletter that delivers industry news, product releases, tips and tricks, local events, and much more, straight to your inbox.
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