Phase 1: Decide what to measure
In this phase, you:
- Define your objectives
- Define critical success factors (CSFs)—the component parts of successfully achieved objectives; in other words, the actions that must be taken collectively to achieve a given objective
- Define performance metrics—the measures you'll use to assess whether you're accomplishing your CSFs
For example, "Increase customer satisfaction," "Decrease on-the-job accidents," or "Cut expenses."
For example, CSFs for the objective "Increase customer satisfaction" might include "Reduce sales staff turnover" and "Improve on-time delivery performance."
For example, "Average length of salesperson tenure in department," "Number of sales staff departures per quarter," and "Percentage of orders delivered within +/- six hours of promised delivery time."