High Leverage Metrics

If you want to make the biggest impact to the business with the least amount of resources and effort.  You need to find your high leverage metrics.  These are metrics that drive your business and will give you the biggest impact to the business if you change them.  Obviously it’s a bit more complicated than just saying we should measure money and money out of a part of the organization.  You want to look for metrics that are leading indicators that you have control over that will help produce a desired goal.  There are three criteria you will want to ask if you want to know if your metric is high leverage

  1. Is it 100% in your control and actionable
  2. Will changing the metric yield desired results
  3. Will the desired results be leveraged – meaning you get much more than you might put into improving the metric

Here are example of metrics that are not high leverage:  Revenue, Number of defects, or Number of users.  These are all outcomes that are not 100% in your goal.

Here are some example of high leverage metrics:  Number of client calls made, Number of quality issues found and are currently being resolved.  These are all with-in your control and are most likely to yield tangible results.

High leverage metrics are the metrics you want to present first in any kind of meeting.  The first set of metric examples can be used to see if the metrics you are using are truly high leverage or not.  If you think the number of client calls will increase your number of users and increase your revenue then you can validate that.  You don’t want to use metrics like revenue for action but as a verification.

If you want to learn more about high leverage metrics and how to implement it apply for a discovery call now and we can do a deep dive discovery of your situation at no cost if you qualify.

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