At Bridgewater, we talk about four helpful steps to creating good metrics: 1) know what goal your business is achieving, 2) understand the process for getting to the goal (your “machine” with its people and design), 3) identify the key parts in the process that are the best places to measure, so you know how your machine is working to achieve that goal, and 4) explore how to create levers, tied to those key metrics, that allow you to adjust your process and change your outcomes.
