Developing Metrics to Drive Performance for the Field of Performance Improvement

We are familiar with the management philosophy what gets measured gets managed, often attributed to Peter Drucker, and that metrics are data driven (Lane, 2010). The quantifiable nature of metrics allows stakeholders within an organization to track performance, the success or failure, of that business activity. Often there are confusions about the differences between key performance indicators (KPIs) and metrics. Hatheway (2016) succinctly explains that “metrics support KPIs, KPIs in turn support the overall business strategic goals and objectives” (p. 1). When done right, KPIs are “aligned to the company’s long-term objectives and what customers care about. If it does not pass this test, then it is just a metric” (Crayne, 2017, p. 1). True KPIs help us establish benchmarks across an organization and enables us to see where the best performance is taking place, which in turn enables stakeholders to share their best practices (Crayne, 2017).