Companies typically use financial measures such as sales and earnings to track and communicate performance. But what happens when those aren't the most important business metrics?
Investors and leaders can miss out on problems and opportunities if they're too focused on the wrong business metrics.
According to Michael J. Mauboussin, a contributor to Harvard Business Review, the right business metrics help you understand, track, and manage the cause-and-effect relationships that determine the value of your company.
The difficulty lies in figuring out how to make a coherent narrative out of the wealth of data accumulated by today's businesses, says Dimitri Maex, co-author of “Sexy Little Numbers.” Maex wrote about measuring what matters and making sense of your data, and says measurement planning is the way to make sense of the surplus of information available to today's businesses.
