How We Serve You : White Papers
Ten Rules for Developing Management Metrics
Rule 8: Measures Must Relate to Activities Performed Regularly
In order for a company to achieve necessary results, it needs to ensure that the metrics selected will drive its financial performance. Performance metrics are often considered as leading indicators, while the financial results are regarded as lagging indicators. A focus and regular review of the leading indicators will enable control of process outputs.
Regular reviews should take place at all levels of the company. On the shopfloor, reviews can occur daily while those in departments might need a weekly review and others at other levels of management should perform monthly reviews.
