Friday, August 19, 2022

3 Types of Metrics

"We water our Mango orchard twice a week". 
This is a typical example of a Process Metric

"We produced 3 Tons of Mangoes last year." 
This is a typical Output Metric.

“Last year, our Mango orchard made a net profit 84 Lakh” 
This is a typical Outcome Metric.

If we are responsible for running a chemical plant, then monitoring every smallest parameter is crucial and extremely important. Not tracking a parameter can even be life-threatening.  
If we are in the knowledge industry, particularly if we are involved in creating something INTANGIBLE (like software), then process Metrics are almost useless, if used in isolation.
They should be used hand-in-hand with Output Metric.

In the knowledge industry, Output Metrics are almost useless, if used in isolation
They should be used hand-in-hand with Outcome Metric.

Generally speaking, Sr. Management in any company is interested only in Outcome Metrics.
Because Outcome Metrics reflect how our work is helping our business

Sr. Management may shift their focus from Outcome Metrics to Output metrics when they are not happy about Outcome Metrics, or Outcome metrics are not shown to them at all. 
If your Sr. Management is looking at Output Metrics, that is not a good sign for the team.

Sr. Management shifts their focus from Output Metrics to Process metrics, when they are not happy about Output Metrics, or Output Metrics are not shown to them at all. 
If your Sr. Management is looking at your Process Metrics, treat it as a red flag.
A big bright red flag for the team.


1 comment:

  1. Nowadays after more agile and scrum practice, outcome is given more importance then output.

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