The Data Fluent Culture - Data Fluency: Empowering Your Organization with Effective Data Communication - page 136

something's position relative to other things. He goes on to add that
the numbers should also contain at least one unit of measure that
characterizes the thing being counted. The units of measure enable
data analysts to consistently express results of a measurement process.
Using two measures can assist this process. For example, instead of
just reporting “number of new sales accounts opened,” a second unit
of measure such as “per 1,000 calls” enables the constructed metric to
be used for benchmarking.

Good metrics have a common interpretation and are consistently
measured. It is imperative in an organization that all people in the
organization recognize what the metrics mean and have assurance
that the metrics are consistently generated. To facilitate this, leaders
should ensure that measurement processes are clearly documented
and that employees share a common set of terminology to under-
stand the meaning of data presentations. A common issue in sales
organizations is the definition of a lead . What level of interest does a
lead need to have demonstrated? How ready and qualified does the
person need to be in order to be labeled as a lead? These definitional
issues—if not dealt with consistently in data capture and discus-
sions—can lead to a lot of confusion about the meaning of any key
metrics based on data about leads.

⬛

Good metrics are contextually specific and actionable. Good met-
rics hold meaning for members of an organization and signal specific
actions that can be taken. They shed light on an underperforming part
of an organization, chronicle the results of continuous improvement
efforts, or demonstrate the value of specific people and processes
within the organization (Jaquith, 2007).

⬛

The table below provides a set of performance metrics that are representative
of the four dimensions of good metrics. They are all composed of data that is
often accessible and easy to gather; the calculations are transparent and easily
understood; they can all be expressed in numbers and units of measurement;
and they offer contextual detail that can be actionable. Having described the
characteristics of a good metric, we now turn to a discussion of the ways that
leaders can leverage metrics to promote organizational performance and
build data fluent cultures.