Measuring Intangibles: Breaking Down Analytic Barriers

Performance management depends on measurement, and many of the measures are financial. But financial measures have little impact on business performance; they measure the past and tell us little about the future. However, they are comfortable and tangible. We know how to count dollars. Even the common non-financial measures are tangible, retrospective, and relatively easy. Many of the things that we need to assess seem to be especially difficult to measure, so we measure what is easy instead of what is needed.

The right things to measure are those that drive goal attainment. This means changing the measurement focus from outcomes to influences—from past to future. Outcome-based measurement uses lagging indicators, which monitor past performance but contribute little to managing future performance. Influence measurement uses leading indicators—predictors of future performance and levers to shape the future.

You Will Learn

Why measuring intangibles is central to managing future performance
The challenges of performance indicators such as customer satisfaction and employee morale
How to establish scope and quality criteria for intangible measures
How to identify, select, and define intangible measures
Measurement techniques for intangibles
How to apply intangible measures for business leverage

Geared To

Business analysts and business managers; analytics designers and developers; BI program and project managers; problem solvers

Technical resources.

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