A Professional's Guide to Decision Science and Problem Solving: Define the Objectives and Identify Metrics
- 1.1 Chapter Topic
- 1.2 Key Corporate Participants
- 1.3 Management Steps Required to Execute the Approach
- 1.4 Solving the Right Problem
- 1.5 Developing an Understanding of the Problem
- 1.6 Defining Goals and Objectives of a Company or Organization
- 1.7 Defining the Framework for the Decisions Being Made
- 1.8 Metrics for Measuring Success
- 1.9 Definition of a Metric
- 1.10 Developing Decision Criteria and Metrics
- 1.11 Data Used to Support Metrics
- 1.12 Structure and Definition of the Problem
- 1.13 Key Concepts in Defining the Objectives
1.13 Key Concepts in Defining the Objectives
Following are the key points of this chapter:
- Groundwork in understanding and defining the problems facing a corporation is essential to bring to light functional areas requiring improvement. They need to determine the scope of functional areas that may be impacted.
- It is necessary to establish corporate objectives to strategically define the direction of a company. This requires consensus among decision makers.
- A corporation has multiple conflicting objectives that require the balancing of cross-function activities.
- Decision criteria and metrics provide quantifiable measures that can be driven down into the corporate decisions so that activities meet the corporate objectives.
- Understanding the data required and data available to support corporate metrics facilitates the measurement of the key metrics and contribution to accomplishing corporate objectives.
- Subjective data or opinions provide insights into a subjective assessment of a metric. Subjective data and expert opinions are typically forward looking in nature, trying to predict what will happen in the future as opposed to statistical analysis that deals with historical data.
- It is important to weight the objectives and metrics across all executives to gain a consensus in the direction of the company.
- Senior executives must be involved in this initial step of the process to establish the corporate objectives that can drive the cross-functional problem solving effort.