5 Fundamental Principles to Set the Right Metrics for Your Program

A metric is a quantifiable measure that is used to track and assess performance. There are various industry standards and guidelines on how to set metrics. In this post, I will try to outline some fundamental principles to keep in mind while setting metrics.

Principle 1: Align to organizational goals/KPIs

While defining your program objectives and metrics, always look at the bigger picture. Ask these questions:

• Is my program contributing to organizational goals/KPIs?
• Are the program objectives achievable and measurable?

Always break down big goals into actionable programs/projects and set relevant metrics.

Let's say, one of the organizational goals is to increase the quality of work. All functions will align to this goal and aim reducing the error rate at work. They may set targets such as, reduce error rate from 50% to 40%. Within each function, there may be various intiatives/programs to achieve this target.

Principle 2: Make it real and achievable

Evaluate the scope of your work and set metrics that make sense within the scope. For example, if the L&D function is expected to contribute to this objective of reducing error rate from 50% to 40%, the scope of the work might be to run training programs on common errors at work and best practices. In this case, the metrics would be:

• Number of trainings conducted
• Participation%
• Feedback survey results

If they want to set metrics such as before vs. after performance/ practical application of lessons learnt during training, they must design a process that supports this.

Principle 3: Get consensus

Let's assume the L&D function wants to set processes and metrics to measure on the job performance after training. The process requires commitment and support from all stakeholders and managers. If they do not get their consensus, they need to tweak the metrics based on what's achievable. Metrics without consensus is an empty promise.

Principle 4: Publish and speak about it

We speak a lot about organzational goals, program/project goals. While we do that we also need to clearly articulate how success will be measured. This is not a one time activity. This needs to be reiterated and reinforced as frequently as possible. Every team member must be very clear what are they working on, how are they contributing to the bigger goals and how will success be measured. Things unsaid are never taken seriously.

Principle 5: Set a process to track progress

We continuously track program/project status. While we do that, we also need to map progress against metrics.

Set a cadence to track progress. Ask questions such as:

• What's the progress so far?
• If we continue like thus, how likely are we to achieve the target?
• How likely are we to hit the numbers we want to?
• What do we need to do to ensure we achieve the expected outcome?

Tweak the activities/process based on the status.