For this discussion, read What Are Business Metrics? and Measuring Communication Effectiveness Across Diverse Backgrounds and Missions. In your initial post, address the following questions:
- What are some key considerations that could drive organizations to put metrics in place to measure the effectiveness of internal communication initiatives?
- How might the metrics be similar or different with an external communications initiative?
- Why is the particular business environment organizations operate in an important consideration when implementing metrics?
Business Metrics Definition
A Business Metric is a quantifiable measure that is used to track and assess the status of a specific business process. It’s important to note that business metrics should be employed to address key audiences surrounding a business, such as investors, customers, and different types of employees, such as executives and middle managers. Every area of business has specific performance metrics that should be monitored – marketers track marketing and social media metrics, such as campaign and program statistics, sales teams monitor sales performance metrics such as new opportunities and leads, and executives look at big picture financial metrics.
Business Metric or Key Performance Indicator? What’s the Difference?
To be effective, business metrics should be compared to established benchmarks or business objectives. This provides valuable context for the values used in the metric and allows business users to better act on the information they are viewing. For instance, $20M sales in Q4 sounds like an impressive figure; however, if you’re Boeing Aircraft, this figure would have you contemplating filing for bankruptcy.
Context allows business metrics to make an impact. In fact, this is where the line between key performance indicators and performance metrics becomes blurry. The difference between the two ultimately comes down this:
- Business metrics are used to track all areas of business
- KPIs target critical areas of performance
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