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Metrics

Measuring performance toward reaching a goal

Updated over a year ago

Metrics are quantitative numbers that a business uses to measure its operational performance. Both leading and lagging indicators can be metrics. Most businesses track changes in metrics on a regular basis and run seasonality analyses or cross-industry benchmarks on their metrics.

Examples of metrics may include:

  • Cost per pound

  • Revenue per head

  • Average pallets per truck load

  • Utilization rate

  • New deals per quarter

  • Reports per week

  • Ratio of production costs to transport costs

  • Percentage of wastage

  • Feed conversion

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Metrics are a key indicator of the health of a business and should be selected and aligned to the company’s top strategies and priorities. Metrics for a challenge should be specifically selected to measure progress toward reaching the goal of the challenge.

It is common to have only a few primary metrics, 5 or less, and (optionally) many more secondary metrics. If there are too many metrics, it can be hard to gauge success.

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