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SETTING METRICS TO MEASURE SUCCESS
MICHAEL LANGLEYJANUARY 18, 2017
OVERVIEW
Metrics play a key role in building a globally competitive region. Determining the right measures is critically important to provide the economic development partnership with the right information to move ahead.
We will review key things to measure, how to set measures and look at a case study on how the Greater MSP region has addressed this challenge.
Understand progress
WHY IT’S IMPORTANT
Learning for product improvement
Provide data on return to stakeholders
Think about Organizational Efficiency vs. Organizational Effectiveness
Measure Outcomes rather than Input Factors
Include Longitudinal and Benchmark Measures
Measure Outcomes rather than Activity
Monitor lagging and leading Indicators
WHAT TO MEASURE
KEY CONSIDERATIONS
Number of measures reflects scope of work
Easy to collect; available sources
Easy to understand for team and stakeholders
Effectively reflect measure of performance
Adequately define results
Related to outcomes of activities
Source: IEDC 2014
CAUTIONS
Not everything that can be measured should be measured.
Metrics are a point in time measurement. Don’t over-invest in metrics at expense of other goals.
Economic development partnerships don’t take credit for sole responsibility for driving performance, but measure things in which they played a role.
Get stakeholder buy-in; make them part of the process.
TYPES OF METRICS
External Organizational
Perspective
Internal Organizational
Perspective
Customer Perspective
Product Improvement Perspective
Financial Performance Perspective
TRADITIONAL MEASURES
Measures need to evolve to reflect knowledge based economy and address global competitiveness
Jobs Vacancy Rate
• Direct New Business Start Up
• Indirect Average Salary
Capital Investment Exports
No. Businesses Attracted Tax Base Impact
No. Businesses Retained Conversion Rate
Collaboration among key stakeholders in region’s global competitiveness
Measures interdependency of categories measured
Provides objective starting point for decision making
Updated annually
CASE STUDY: REGIONAL INDICATORS DASHBOARD
Leading Indicators
Longitudinal Measures
Includes Benchmarks
Lagging indicators
• Key market characteristics
• Slow to change
• Impact, but not driven by economic development activities
www.greatermsp.org/regional-indicators/
Beyond the Dashboard
• Regional Competitiveness Working Group
• Regional Advocacy Council
TURNING METRICS INTO ACTION
