A goal is an organizational outcome people want to achieve. In analytics, it gives a metric a purpose: a team chooses what to measure because the result bears on a decision or an improvement it wants to make. A target is different—it states a desired value for a metric over a period of time. section 7.2 section 7.4
To turn a goal into a useful measure:
- Agree with stakeholders on a specific operational definition. Broad aims such as supporting customers or making an application easy to use need observable measures. section 7.2.1
- Check that the metric is measurable, relevant to the goal, and aggregated over an appropriate period. Its underlying data must be trustworthy. section 7.2.1 section 7.4
- Establish a baseline from historical trends and customer segments; compare suitable external benchmarks before proposing an achievable target. section 7.2.2 section 7.4
- Revisit the target as evidence accumulates. An unreachable target can discourage teams, while an easy one may not prompt meaningful improvement. section 7.2.1 section 7.4
Table 7.2 Many metrics are colloquially discussed as concepts and thus require stakeholder collaboration to create specific operational definitions.
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High-level concept
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Specific metric
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|---|---|
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The engineering team is productive
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Percentage of tasks completed on time
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Customers are supported in their needs
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Percentage of customer problems and questions resolved on the first contact (first call resolution, or FCR)
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Creating an easy-to-use application
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Median time to complete the setup flow for new users
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The table pairs broad organizational aims with specific metrics, showing why stakeholders must agree on what a goal will mean in practice. section 7.2.1
Customer retention
A 100% customer retention target sounds clear but may be unrealistic. Examine past retention or churn, comparable organizations, and factors a team can influence before choosing a target. A fixed rate of improvement may also become infeasible over successive quarters. section 7.2.1 section 7.2.2
