The PDMA Handbook of New Product Development

29.3. How to Implement a Metrics Program

A successful metrics program requires a comprehensive approach that defines the decision structure, organization, process metrics tracking, and templates that can be used to measure, analyze, improve, and control the product development process.

Companies can start by defining the program objectives, picking the right metrics, and then developing a complete solution. The ten-step, three-phase approach shown in Table 29.1 builds on the best practices observed in companies with successful metrics programs, and resolves the four problems discussed earlier. Each phase consists of different objectives.

Table 29.1. Ten-Step Performance Measurement Approach.

Phase	Step	Objectives/Issues Addressed
Phase 1: Define detailed definitions	Define metrics program. Define strategy and high-level objectives. Define balanced performance meterics. Determine present process capability.	Define metrics program charter and work plan. Define metrics program objectives that articulate how the company will benefit from metrics. Link the company's strategy and high-level objectives to performance metrics. Measure the right metrics. Assess the current metrics and leverage then where possible.
Phase 2: Implementation	Define decision-making structure. Establish data collection and reporting process. Define metrics tracking systems.	Define who will review the current performance to identify improvement opportunities. Ensure timely, fact-based, and operateional decision. Define the tasks ...