Killer analytics : top 20 metrics missing from your balance sheet

320 Pages·2013·1.74 MB·English

by  Mark Graham Brown

Killer Analytics
WILEY AND SAS BUSINESSSERIES
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Killer Analytics
Top 20 Metrics Missing from
Your Balance Sheet
Mark Graham Brown
Coverphotography:©pzAxe/Alamy
Coverdesign:MichaelRutkowski
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Brown,MarkGraham.
Killeranalytics:top20metricsmissingfromyourbalancesheet/Mark
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pages cm—(WileyandSASbusinessseries)
Includesindex.
ISBN978-1-118-63171-3(hardback);ISBN978-1-118-69173-1(O-book);
ISBN978-1-118-73778-1(e-book);ISBN978-1-118-73780-4
1. Organizationaleffectiveness—Evaluation. 2. Performance—
Management. 3. Industrialefficiency—Evaluation. I. Title.
HD58.9.B7622013
658.4'034—dc23
2013017382
PrintedintheUnitedStatesofAmerica
10 9 8 7 6 5 4 3 2 1
This book is dedicated to my wife,
Holli Brown.

Contents
Foreword xv
Preface xix
Acknowledgments xxvii
Introduction: What Are Predictive Analytics? 1
Learning from Past Mistakes 1
Organizational Cholesterol 3
Uses of Predictive Analytics 3
Analytics versus Formulas versus Singular Metrics 8
Time Perspectives 10
Past, Present, and Future 10
Analytics Are Superior to Individual Metrics 11
Myths and Facts about Analytics 15
Analytics Used for Studies versus Ongoing Performance
Measurement 18
Part One Operational Analytics................................................21
Chapter 1 The Innovation Index 23
What Is Important about Innovation? 24
Types of Organizations Where This Metric Is Appropriate 28
How Does This Impact Performance? 29
Mostly Worthless Innovation Metrics 30
Cost and Effort to Measure 31
How Do I Measure It? 32
Formula and Frequency 35
vii
viii ▸CONTENTS
Variations 35
Targets and Benchmarks 36
Benefits of Data 36
Note 37
Chapter 2 The Supply Chain Index 39
Types of Organizations Where This Metric Is Appropriate 41
How Does This Impact Performance? 42
Cost and Effort to Measure 42
How Do I Measure It? 43
Formula and Frequency 47
Variations 48
Targets and Benchmarks 48
Benefits of Data 49
Chapter 3 The Project Management Index 51
Types of Organizations Where This Metric Is Appropriate 53
How Does This Impact Performance? 53
Cost and Effort to Measure 54
How Do I Measure It? 56
Process and Churn: Two Additional Metrics to
Consider in a Project Management Analytic 57
Measuring Risk on Projects 59
Variations 60
Formula and Frequency 61
Targets and Benchmarks 62
Benefits of Data 62
Chapter 4 The Enterprise Excellence Index 65
Why Trash All These Sacred Cows? 65
Types of Organizations Where This Metric Is Appropriate 67
How Does This Impact Performance? 68
Cost and Effort to Measure 69
How Do I Measure It? 70