Role of Metrics and Measurement in Strategy, Research Paper Example

Metrics and measurement are essential to the success of a business strategy because they allow the leadership to effectively achieve several management objectives. First of all, metrics allow the management to monitor and control (Kellen, 2003)the progress of the organization. The management can compare the performance statistics against pre-determined performance benchmarks to determine whether the organization is on the right track or operations need to be modified.

Similarly, metrics allow the management to push for improvement (Kellen, 2003) because metrics provide an objective proof that the business strategy needs revision. Because metrics allow the management to compare its progress against the goals, any deviations can be quickly corrected before they become too expensive in terms of cost and efforts. Metrics allow organizations to identify opportunities as well as problems and, thus, allow organizations to make informed decisions (Levin & Rad, 2005).

Metrics are important to the strategy process because they allow management to do an objective analysis of the organization’s performance. The company that doesn’t put metrics and measurement into its strategic plan would have no way of knowing with reasonable certainty whether the strategy is working and operations are meeting the performance benchmarks. The management also won’t be able to reliably compare the organization’s performance with the competition. Without the metrics, it would also be hard to convince the workforce to support change. The management may also miss early signs of trouble that could prove disastrous for the organization in the long run. The management will also have difficulty in identifying the courses of action that may be working and should continue to be followed without any interruption.


Kellen, V. (2003, February). Business Performance Measurement. Retrieved January 16, 2012, from

Levin, G., & Rad, P. F. (2005, September 28). Creating a Metrics-Based Culture for Project Success. Retrieved January 16, 2012, from