Performance Metrics: Beyond the Numbers

Posted on 9. March 2010 by HR Bartender

Peter Drucker once said, “What gets measured, gets managed.” It’s very true. Tracking the numbers is essential to running your business. But it’s also important to not just calculate numbers. You need to have a good understanding of what they mean.

I’ve always enjoyed math and accounting, so I’ve never really shied away from formulas. But over the years, I’ve learned some very valuable lessons about how to appropriately use the information. Not just human resources metrics like turnover, cost per hire, etc. But the need to understand the metrics your CEO is paying attention to. There are some obvious ones like EBITDA, market share, and profit margin. And don’t forget to look at industry indicators as well.

For example in the airline industry, on-time performance was (and probably still is) a key performance metric.

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