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ON MANAGEMENT AND METRICS
Author(s) -
Thomas Henry D.
Publication year - 1993
Publication title -
incose international symposium
Language(s) - English
Resource type - Journals
ISSN - 2334-5837
DOI - 10.1002/j.2334-5837.1993.tb01631.x
Subject(s) - profitability index , metric (unit) , computer science , spell , customer satisfaction , process management , customer retention , customer lifetime value , customer profitability , customer intelligence , business , marketing , service quality , service (business) , finance , sociology , anthropology
This paper examines the origins of the modern‐day system of business accounting and its logical extension to management metrics as we know them. It will demonstrate that the majority of metrics used in industry today are based on financial reporting requirements. It will address the impact of these same metrics on management decision‐making. The paper proposes a systems approach to metrics that really allows management to gauge progress towards the achievement of customer satisfaction and greater profitability. It demonstrates where to find the language in a customer's requirements that will spell the difference between customer acceptance and customer excitement. It introduces a Customer Satisfaction Matrix ‐ and explains how to build and use one. It will use a Window of Opportunity to show how an asset can really be a liability in disguise. It will demonstrate how to structure a metric so that the managerial behavior a company needs for long‐term customer satisfaction and profitability is the only behavioral choice logically and emotionally supported by the metric.