**Some tips on getting the most out of your [[Metrics]], [[KPIs]], and [[OKRs]]** # Ease The harder it is to measure, the less frequently it will be measured. The less likely it will be effective as a metric. People respond to [[Incentives]]. # Clarity (Relevance) A metric should be obviously relevant to the thing ([[Defining Area|area]] or [[Defining Project|project]]) they are intended to measure. If it's possible to avoid using [[Proxy Measures]], do so. # Clarity (Objectivity) Where possible, hard quantifiable, indisputable measures should be used over subjective, or "soft" metrics. # Pairing [[Leading Measures]] with [[Lagging Measures]] Leading measures are a good way to see if something is going off the rails before it happens... lagging measures are a good way to see if the thing you did about it was effective. [[Leading indicators measure strategy adherence and lagging indicators measure strategy effectiveness]]. # Standardize Having a dashboard (something like a [[Work, Health, Love, Play Dashboard]]) or a common personal operating system (something like [[Periodic Reviews]]) will give you the needed structure to actually rely on your system of metrics. # Think about what Behaviors are being Incentivized People respond to incentives. If it is possible to [[Gaming KPIs]] and [[Rule Beating]]. # Pair Quantity with Quality A KPI based solely on quantity incentives pushing products out the door fast, no matter what quality they are in. It creates a culture of go, go, go, which can be reckless to your bottom line. A KPI based solely on quality incentives not producing anything at all. You have zero defects if you make zero shipments. A good KPI pairs quantity with quality. This prevents (or dissuades) [[Gaming KPIs|gamifying metrics]]. # Consider Gaming Manipulations If you are designing a measure and a metric, consider not only what incentives you’re driving, but also how those who are being measured could subvert the results via [[Rule Beating]]. # Measure the _real definition_ of success It is not always possible to measure success directly. When using [[Proxy Measures]] , try to align them as closely as possible with what “success” would _really_ mean. Throughput is one aspect of a process, but if what’s being throughput is garbage, than you have an assembly line whose very successful at making garbage. The best KPIs are those that, when green, _positively_ ensure that all is actually well - and not that someone is playing games. These aren't always easy to come up with. **** # More ## Source - [[Measure What Matters]] ## Related - [[Gaming KPIs]] - [[KPIs]] - [[Goodhart’s Law]]