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Martin Klubeck - Metrics: How to Improve Key Business Results

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Martin Klubeck Metrics: How to Improve Key Business Results
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Metrics are a hot topic. Executive leadership, boards of directors, management, and customers are all asking for data-based decisions. As a result, many managers, professionals, and change agents are asked to develop metrics, but have no clear idea of how to produce meaningful ones. Wouldnt it be great to have a simple explanation of how to collect, analyze, report, and use measurements to improve your organization? Metrics: How to Improve Key Business Results provides that explanation and the tools youll need to make your organization more effective. Not only does the book explain the why of metrics, but it walks you through a step-by-step process for creating a report card that provides a clear picture of organizational health and how well you satisfy customer needs. Metrics will help you to measure the right things, the right waythe first time. No wasted effort, no chasing data. The report card provides a simple tool for viewing the health of your organization, from the outside in. You will learn how to measure the key components of the report card and thereby improve real measures of business success, like repeat customers, customer loyalty, and word-of-mouth advertising. This book: Provides a step-by-step guide for building an organizational effectiveness report card Takes you from identifying key services and products and using metrics, to determining business strategy Provides examples of how to identify, collect, analyze, and report metrics that will be immediately useful for improving all aspects of the enterprise, including IT What youll learn Understand the difference between data, measures, information, and metrics Identify root performance questions to ensure you build the right metrics Develop meaningful and accurate metrics using concrete, easy-to-follow instructions Avoid the high risks that come with collecting, analyzing, reporting, and using complex data Formulate practical answers to data-based questions Select and use the proper tools for creating, implementing, and using metrics Learn one of the most powerful methods yet invented for improving organizational results Who this book is for Metrics: How to Improve Key Business Results was written for senior managers who need to improve key results. Equally, the book is for the department heads, middle managers, analysts, IT professionals, and change agents responsible for collecting, analyzing, and reporting metrics. Finally, its for those who have to chase data and find meaningful answers to the interesting questions executives ponder. Table of Contents Introduction: Who, What, Where, When, Why, and How You Use Metrics Establishing a Common Language Where to Begin: Planning a Good Metric Using Metrics as Indicators Using the Answer Key Start with Effectiveness Triangulation: Essential to Creating Effective Metrics Expectations: How to View Data in a Meaningful Way Creating and Interpreting the Metrics Report Card Final Product: the Metrics Report Card Employing Advanced Metrics Creating the Service Catalog Establishing Standards and Benchmarks Respecting the Power of Metrics Avoiding the Research Trap Embracing Your Organizations Uniqueness Appendix: Metrics Tools to Use and Useful Resources

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Metrics How to Improve Key Business Results Copyright 2011 by Martin Klubeck - photo 1

Metrics: How to Improve Key Business Results

Copyright 2011 by Martin Klubeck

This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. Exempted from this legal reservation are brief excerpts in connection with reviews or scholarly analysis or material supplied specifically for the purpose of being entered and executed on a computer system, for exclusive use by the purchaser of the work. Duplication of this publication or parts thereof is permitted only under the provisions of the Copyright Law of the Publisher's location, in its current version, and permission for use must always be obtained from Springer. Permissions for use may be obtained through RightsLink at the Copyright Clearance Center. Violations are liable to prosecution under the respective Copyright Law.

ISBN-13 (pbk): 978-1-4302-3726-6

ISBN-13 (electronic): 978-1-4302-3727-3

Trademarked names, logos, and images may appear in this book. Rather than use a trademark symbol with every occurrence of a trademarked name, logo, or image we use the names, logos, and images only in an editorial fashion and to the benefit of the trademark owner, with no intention of infringement of the trademark.

The use in this publication of trade names, trademarks, service marks, and similar terms, even if they are not identified as such, is not to be taken as an expression of opinion as to whether or not they are subject to proprietary rights.

While the advice and information in this book are believed to be true and accurate at the date of publication, neither the authors nor the editors nor the publisher can accept any legal responsibility for any errors or omissions that may be made. The publisher makes no warranty, express or implied, with respect to the material contained herein

President and Publisher: Paul Manning
Lead Editor: Jeff Olson
Technical Reviewer: Russ Cheesman
Editorial Board: Steve Anglin, Mark Beckner, Ewan Buckingham, Gary Cornell,
Morgan Ertel, Jonathan Gennick, Jonathan Hassell, Robert Hutchinson, Michelle
Lowman, James Markham, Matthew Moodie, Jeff Olson, Jeffrey Pepper, Douglas
Pundick, Ben Renow-Clarke, Dominic Shakeshaft, Gwenan Spearing, Matt
Wade, Tom Welsh
Coordinating Editor: Annie Beck
Copy Editor: Kimberly Burton
Compositor: Mary Sudul
Indexer: SPi Global
Artists: Martin Klubeck and Alyssa Klubeck
Cover Designer: Anna Ishchenko

Distributed to the book trade worldwide by Springer Science+Business Media New York, 233 Spring Street, 6th Floor, New York, NY 10013. Phone 1-800-SPRINGER, fax (201) 348-4505, e-mail .

For information on translations, please e-mail .

Apress and friends of ED books may be purchased in bulk for academic, corporate, or promotional use. eBook versions and licenses are also available for most titles. For more information, reference our Special Bulk SaleseBook Licensing web page at www.apress.com/bulk-sales.

To all those struggling to improve their
organizations, their processes, or themselves.
Spend your time chasing your dreams, not data.

To my father: I miss you greatly. My major hope
through my writing is to make you proud.

Contents

Chapter 1: Establishing a Common Language: Data, and Measures, and
Information, OH MY!

About the Author

Martin Klubeck is a strategy and planning consultant at the University of Notre - photo 2Martin Klubeck is a strategy and planning consultant at the University of Notre Dame and a recognized expert in the field of practical metrics. He holds a master's degree from Webster University in human resources development and a bachelor's in computer science from Chapman University. He is coauthor of Why Organizations Struggle So Hard to Improve So Little and numerous articles on metrics. His passion for simplifying the complex has led to the development of a simple system for developing meaningful metrics. Klubeck is also the founder of the Consortium for the Establishment of Information Technology Performance Standards, a nonprofit organization focused on providing much-needed standards for measures.

About the Technical Reviewer

Russ Cheesman is a senior information technology professional and consultant with experiences in all phases of the System Development Life Cycle. Much of his career had been devoted to enabling IT solutions for business problems and/or opportunities. He has served as an IT manager and practitioner in many industry sectors, including banking/financial, manufacturing, construction, retail, pharmaceutical, telecommunications, and health care. Mr. Cheesman, in recent years, has been practicing business performance measurement and management within several IT and health care organizations through the use of business strategy, balanced scorecards, metrics, key performance indicators, and business analytical systems.

Mr. Cheesman was happy to serve as the senior technical reviewer for this book and related concepts on metrics, and looks forward to its release and subsequent value to all those individuals, groups, and organizations that desire improvement, continuous maturation, and peak performance.

Acknowledgments

The purpose of an acknowledgment, as I understand it, is to let those people who helped make this achievement possible know that I didn't forget their contributions. This chore makes this easily the most stressful part of writing a book.

I don't want to forget any of my friends or colleagues who helped me by reviewing, critiquing, or suggesting edits to the work as it was in progress, especially: Don Padgett, Danita Leese, Leah Lang, Keith (Mac) McIntosh, Marin Stanek, and my brother Irving. Thanks for the short-notice reads. Thanks for the kind words. And thanks for being there.

Of course, Russ Cheesman has to be thanked for his work as my technical reviewer. Although Russ and I disagreed as often as we agreed about metrics and their use, when asked for a recommendation, I immediately thought of Russ for the job. His honest and passionate position, his large knowledge base, and his expertise made him an easy choice. Thanks, Russ, for your hard work, your many suggestions, and your honest appraisals.

I want to give a special thanks to Michael Langthorne. Not only were you my most dependable reviewer, but your early and consistent encouragement to take this journey, on my own, was instrumental to me starting and finishing this work. I appreciate your help, guidance, and gentle but steady shoves very much. Thanks. I truly could not have done this without you.

I also want to thank Jeff Olson, Kimberly Burton, and Annie Beck. Although you made up the Apress editorial team, and were just doing your jobs, I can't say I saw you that way. I greatly appreciate your help. You were honest, consistent, and fair. You were focused on producing the best product possible for Apress while showing sincere concern for my position as an author. Someday, if the chance ever arrives, I'm buying the first round.

Last, but as the saying goes, not least, I want to thank my family. Especially my wife, Kristine. This time around, you successfully feigned interest in my progress, if not in the work itself. I appreciate the effort and I love you dearly. Alyssa, thanks for your help with the fairy tales and allowing me to use your art work for the book. I look forward to seeing your name on more jacket covers. I love you.

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