Confusion over number of metrics
Managers who measure performance routinely encounter common pitfalls during each phase of the process. To avoid these pitfalls, start by understanding them.
Avoid relying on just one metric to measure your group's overall performance. Also resist any urge to create a long list of metrics to measure everything you can think of that relates to your group's performance. The goal is to identify the activities that will have the greatest direct impact on your group's performance—and develop metrics for those activities.
If you've defined three or four major objectives for your group, each of those will likely be translated into two or three critical success factors. Each CSF, in turn, will be translated into one or more performance metrics. Thus, four objectives may ultimately translate into as many as 24 metrics. If the number of metrics grows much larger than this, you'll expend too much energy tracking data and will lose the "big picture."
