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Importance Of Metrics

Submitted by rickdavis1000 on June 23, 2007

Category: Miscellaneous
Words: 1608 | Pages: 7
Views: 130
Popularity Rank: 74,423
Average Member Grade: N/A (Add a Comment / Grade this Paper)

Abstract

Establishing metrics is crucial to any organization, especially in technology related company projects. Metrics permit organizations to measure its performance against industry sectors to determine how well the company is doing. Furthermore, metrics allow organizations to evaluate and improve the effectiveness and efficiency of its processes. Metrics are designated in different categories. The categories identified in this document include output, in-process, and people. The organization must first determine exactly what it is that the company is trying to accomplish or determine. Metrics are then identified based on what is relative to the subject matter. Finally, metrics are verified when tracking progress against previous records or a company given standards or goals.

Importance of Metrics
Establishing metrics is crucial to any organization, especially in technology related company projects. Metrics can be defined as a system of parameters or “ways of quantitative and periodic assess of a process that is to be measured, along with procedures to carry out such measurement and the procedures for the interpretation of the assessment in the light of previous or comparable assessments” (www.wikipedia.com). The results of the metrics can be utilized to record trends, efficiency, capital, and etcetera. Metrics permit organizations to measure its performance against industry sectors to determine how well the company is doing. Furthermore, metrics allow organizations to evaluate and improve the effectiveness and efficiency of its processes. As stated previously, the establishment of metrics is beneficial for any organization. Metrics allow organizations to optimize its productivity.
Categories of Metrics
Categories of metrics differ according to the type of company and its goals. An article written by Paul Germeraad (2003), describes in detail different segments of metrics that are utilized...

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