Metrics are a measurement tool that tell us how well we are performing on established action steps. Metrics include a form of measurement, a timeline and a target. Here are some common metrics:
- Lose 10 lbs. by January 1
- 5 million in sales by December 31
- 20 new clients in November
- 90% customer satisfaction on the monthly customer satisfaction report
The metric, losing 10 lbs. by January 1, tells us three things. It clarifies that the outcome of our actions will be measured by the amount of weight we lose. It sets a target of 10 lbs. The established timeline is by January 1, 2016.
Likewise, the metric 5 million in sales by December 31 tells us three things. The effectiveness of our actions will be measured by how much we sell. Our target is $5 million. The timeline for these sales is by December 31, 2015.
Metrics serve a critical role in strategic planning, but choosing the right measurement, target and timeline can be challenging. When we set lofty metrics, our brain shuts down in the face of the challenge. Because the target seems impossible, we lose our motivation to try. When we set low metrics, we are not challenged enough. We may perform below metric because we think we have it “in the bag” and don’t put forth enough effort.
The ideal metrics create an optimum level of discomfort for growth. They are neither too hard or too easy, but just right. We should struggle a little to achieve it, but not so much we want to quit. Setting these metrics at the right level includes a high degree of self-awareness and social awareness among leaders. But when the ideal metric is established, you will see your team rise to the challenge to meet it.