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Funnily I happen to work in the area of metrics and KPIs and for anyone reading this, the scenario you describe is one of reaaaally bad metrics/ KPIs. Nominal
by thenaturalist 7y ago
Funnily I happen to work in the area of metrics and KPIs and for anyone reading this, the scenario you describe is one of reaaaally bad metrics/ KPIs.
Nominal numbers = bad KPI
Ratios = good KPI
"Repair spend / (lost) court filings" is a way better ratio than plain "Repair spend".
- wpietri 7y agoJust to be clear, I was suggesting that the metric was "repair spend / sales volume". Also a bad metric, of course. But yes, it's perfectly possible that a company would use a bad nominal metric like "repair spend". It need not even be explicit. Typical budgeting processes encourage that sort of thing because it's seen as good to be under budget and bad to be over it.