What Is A Measurement Program

A measurement program is designed to help people understand and interpret the processes of an organization. No company, for example, would dream of operating without a way of tracking and analyzing its financial transactions. A financial accounting system is the fundamental data collection process within the financial measurement program of an organization. One measurement used by accountants in this program is the accounts- receivable turnover ratio. This ratio indicates how well assets are used by determining how many times accounts receivable is turned over each year. Calculating this ratio requires a system that collects the net credit sales and the average accounts receivable for the organization.

Although executives would not ask a credit manager to improve operations without first determining the current and potentially optimum accounts-receivable turnover ratios, they frequently ask IS managers to improve operations without any idea about important current and projected data and ratios. Whereas extensive computerized tracking systems support the financial and managerial measurement systems that underlie the operations of an organization, IS managers are left with intuition and guesswork to control their part of the organization. The historical lack of systems to track and analyze key characteristics of the IS function sets the function apart from other aspects of business operations. Cutting costs or enhancing productivity is thus especially problematic in IS because it is usually accomplished without a detailed picture of expected versus current operations.

A measurement program spans the past, present, and future of company operations. Data from past operations is used as a historical baseline to measure present and future processes and projects. Present tasks provide current collection opportunities and data that is analyzed against the historical baseline to guide improvements in future performance. A measurement program thus consolidates data from the past and present to provide the insight that helps IS managers take action for future improvement.

A measurement program requires the formulation of specific, quantifiable metrics. Metrics are quantitative values obtained by measuring characteristics of a system or process. A metric is a piece of information that is analyzed, interpreted, and used to monitor progress toward improvement.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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