The four types of metrics

The Fitness for Purpose Framework, unveiled by David Anderson and Alexei Zheglov in their recent book Fit For Purpose — How modern businesses find, satisfy & keep customers (which I highly recommend), classify metrics into four groups:

1) Fitness criteria (KPIs) with thresholds → Indicate selection (by customers)

2) Health indicators with a healthy range → Used to monitor capabilities or aspects of the business. Should be monitored because they may give you early warning of problems that will eventually manifest in a failure to be fit-for-purpose.

3) Improvement drivers with a target → Used to motivate change and are generally linked causally to fitness criteria.

4) Vanity metrics → Make us feel good, where more is always better.

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Till the next time!

Marcio Sete

Elabor8 is a consulting company that speeds the creation of customer value through a focus on people, teams and organisational Agility. We concentrate on building knowledge, uplifting capability and identifying efficiency improvements across technology, product innovation and design, Agile delivery and advisory. For more information visit elabor8.com.au