I was facilitating a client performance measure development session recently, and the team was wrestling with measure definition. When I reviewed the customer perspective team\u2019s work I found:<\/p>\n
Measure Name:<\/strong> % of Customers Satisfied The team was mystified by what the formula should be. The following definitions and examples helped them get back on track.<\/p>\n Measure name<\/strong><\/span> is a word or short phrase that names the specific measure and is understood by users. The description<\/strong><\/span> details what the measurement is about, including its intent, why it matters and what it includes and excludes. Imagine describing the measure to someone on an elevator. A formula<\/strong><\/span> is the mathematical equation or rule used to calculate the measurement, and expressed in symbols, essentially a set of instructions for creating the desired metric.<\/p>\n To demonstrate, below are a few common measures from various walks of life, with an example of a description and formula.<\/p>\n Name:<\/u><\/strong> Customer Satisfaction Survey Score<\/strong><\/u> Name:<\/u><\/strong> Fuel Efficiency<\/strong><\/u> Name:<\/u><\/strong> Fuel Consumption<\/strong><\/u> Name:<\/u><\/strong> Batting Average (baseball)<\/strong><\/u>
Description:<\/strong> % of Customers Satisfied
Formula:<\/strong> % of Customers Satisfied<\/p>\n
Description:<\/strong> Periodic survey of a sampling of customers, who are asked to quantify an \u201cI am satisfied\u201d-type response on a five-point Likert scale.
Formula:<\/strong> # indicating Agree or Strongly Agree \/ total # of responses<\/p>\n
Description:<\/strong> the distance traveled per unit of fuel used. Used in the US, UK, and much of Asia. The higher the value, the more efficient the car is at using fuel.
Formula:<\/strong> # of miles driven \/ # of gallons of fuel used (or # of km driven \/ # of liters used)<\/p>\n
Description:<\/strong> amount of fuel used per unit distance driven, often expressed as liters used per 100 kilometers driven. Used in much of Europe. The lower the value, the more economical a vehicle because it takes less fuel to drive a certain distance.
Formula:<\/strong> (# liters of fuel used \/ kilometers driven) *100<\/p>\n
Description:<\/strong> Batting average is used to compare the consistency of batters in baseball. It is calculated as the number of hits divided by the official number of at-bats and is expressed as a decimal to three places of accuracy.
Formula:<\/strong> Total # of hits \/ total # of at bats, not including walks, sacrifices, or hit by pitches<\/p>\n