Answer 2:
Good companies are always aware about their core-competencies and their areas of concern. They get to know them through the analysis of several measurement matrices and constantly comparing their performance against their competitors, and how well have they performed in the past. These matrices are designed in a ways that give these companies a complete picture of where they need to improve, and where they need to put in more resources.
Metrics are simply numbers that tells you about the process. If the numbers or score is low in these metric, it means that the process needs improvement. If this number is high, then the process is very well designed and leading to customer’s satisfaction. (Wheelen and Hunger, 2010)
Another important reason to have these metrics is to understand the area of poor performance. No company can improve itself unless it knows which areas require attention, and where the company can let the things go unchanged. (Forrest, 2014)
Sometimes, metrics also tell the company about the most important processes. It is a well known fact that some processes are more important than others. Hence, for a company to do well, it needs to focus on the processes which are more important that other processes. For example, in marketing jobs, interpersonal skills and personality are considered to be the most important facet of the job. If these two facets are slightly out of tune, they will require immediate improvement. They will take precedence or priority over other processes in terms of improvement. Hence, it is very important for the companies to know their areas of weaknesses, and their important processes in order to devise an improvement strategy that will answer all the flaws or errors in the company’s processes. (Management Study Guide, 2014)
References
Forrest, G. (2014). The Importance of Implementing Effective Metrics. Isixsigma.com. Retrieved 29 November 2014, from http://www.isixsigma.com/methodology/metrics/importance-implementing-effective-metrics/
Managementstudyguide.com,. (2014). What are Metrics and Why are they Important ?. Retrieved 29 November 2014, from http://managementstudyguide.com/what-are-metrics.htm
Wheelen, T. L., & Hunger, D. J. (2010). Concepts in Strategic Management and Business Policy Achieving Sustainability, (12th ed). Upper Saddle River, New Jersey: Prentice Hall, Pearson Education,
