Match the metric - Deciding What to Measure - Learn - Performance Measurement

Choose the best performance measure for the Critical Success Factor: Improve customer satisfaction.

Increase in sales over six months

Not the best choice. This particular metric would measure something that might be a result of improved customer satisfaction, but is not a specific and direct method of checking performance against the CSF.

Percentage increase on satisfaction rating in customer surveys

Correct choice. This metric is a good measure of the CSF. Using data from customer satisfaction surveys is a good way to quantify a subjective success factor such as improving customer satisfaction.

Decrease in employee turnover

Not the best choice. This is not an effective measure of the CSF because it is not a metric that identifies performance closely related to improving customer satisfaction.

Number of new products offered during fiscal year

Not the best choice. While new products might make for happy customers, this is not a metric that specifically measures something related to customer satisfaction.

Choose the best performance measure for the Critical Success Factor: Improve sales staff performance

Number of new employees hired

Not the best choice. This performance metric does not measure something directly related to improving the performance of sales employees.

Increase in training costs per employee

Not the best choice. Though this metric could in time result in an increase in sales, it is not a good way to measure the performance of sales staff.

Decrease in product failure rate

Not the best choice. Though this metric could in time cause an increase in sales, it is not a good way of measuring the performance of sales staff.

Percentage increase in number of sales to new clients

Correct choice. The percentage change in sales to new customers is an easily quantifiable metric that could be derived directly from the CSF of improving the performance of sales staff.

Choose the best performance measure for the Critical Success Factor: Train employees in new production process

Percentage decrease in product flaws

Not the best choice. Although successful training could result in fewer product flaws, this metric does not by itself measure success at training new employees.

Percentage of employees with passing grade on new process evaluation

Correct choice. The percentage of employees with passing grades is an excellent quantitative metric for measuring the success of employee training.

Increase in advertising expenditures

Not the best choice. Measuring new advertising expenditures is not an effective performance metric for training new employees.

Increase in overall revenue

Not the best choice. While overall revenue may increase as a result of new process training, it is not specific enough to be an effective metric for this CSF.