Write a brief description of what metrics are.

o Here it would be good to include some sort of text/source definition.

o It would be good to note some big picture use of metrics here as well.

§ This can include notes including; metrics allow business leaders to make decisions based on data instead of hunches.

§ Data driven decisions are generally more accurate, helps find negative trends to correct or positive trends to exploit, etc.

1- What are the Most Important Metrics For OM

· Within this section you will call out what metrics you find as the most important.

o What are the metrics?

o The big call out here is that metrics are specific measurements.

§ Customer service is not a metric.

· For customer service, a very common metric is average speed of answer for phone calls

§ Planet (if 3p focus) is not a metric.

· For profit a very common metric is COGs (cost of goods sold).

§ Employee empowerment is not a metric.

· For people focus, a common metric is annual employee turnover.

o You want to call out metrics that monitor these types of components.

2-Why are these Metrics the Most Important

· Within this section you will take your above list, and describe why they are important measurement.

o For the ASA call out;

§ Average speed of answer is an important customer service metric to help show how well we are able to handle our customer calls.

§ This is important as customer’s value prompt service.

o For the turnover call out;

§ Employee turnover is an important measure because it shows how satisfied employees are with the company.

§ This is a good indicator of empowerment.

§ High turnover can impact quality, costs, etc. Essentially, why are the metrics in #1 important?

o For COGs, this is a good profitability measure as the cost needs to be far below the retail price.

§ Most of these notes should link the metric to some sort of gauge of the health of the organization.

o Why these metrics?

3-Where Do You Get The Data

§ Within this section, you will explain how you pull the data for the above.

o For ASA;

§ Data for the ASA would be pulled from the company’s IVR platform. This platform should generate basic call center data.

o For turnover;

§ Most HR departments track this metric and should be able to provide as needed.

o For COGs;

§ The OM should be tracking this as part of the BOM input to the MRP.

o Whatever the metric, the number has to come from somewhere. For financial data, this can often be taken from a corporation’s 10K.

o If you are looking for customer or employee input, surveys can be a good source.

o The main component here, describe how the data will be generated.

o Where does the metric come from?

4-How Do You Analyze

§ The above noted data all has to be reviewed in some sort of context.

o Within this section you should describe how the data is analyzed.

§ Benchmarking against industry averages, or best in class, is almost always a good way to analyze data.

§ For ASA;

· This metric could be compared to customer expectations that could be gathered by looking at abandon rates and through customer feedback.

· Reviewing trending for MoM (month over month) or YoY (year over year) changes can be a powerful way to compare data points.

· The topic here, summarize considerations when looking at this metric.

o What context should be used when reviewing this metric?

Provide a reference page.

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