Avinash’s Occam’s Razor blog posts are always educational and insightful. But for many of us tiny businesses, the discussion gets into complexities that we rarely think about. When it comes to compound metrics for social media, most of us are not yet looking at any social media metrics. In fact, when I look at our customers, the majority don’t work social media at all. But, even within the post Excellent Analytics Tip #25: Decrapify Search, Social Compound Metrics, valuable lessons are reinforced.
For me, an important question was “Would your management team know what action to take when you plonk this compound metric in a dashboard?”
That is, or should be, THE point for every KPI or assumed KPI that you think about putting on your dashboard.
After reading the article, I thought to myself, “how many times were his conclusions and statements about action?”
So I went back and checked. Let’s look at some of the places where action is the key. (The bold of action in the quotations are mine).
(1) “This is the problem with compound metrics. You don’t know what causes the final number to happen. You don’t know the focusing factors, hence you are blind to why things go up/down and what actions you can take to improve.”
(2) “Would your management team know what action to take when you plonk this compound metric in a dashboard?”
(3) “Now the Dear Leader has what they wanted, but we’ve also provided what they needed to go from data to action.”
(4) “Now it is easy for them to prioritize where we should devote resources to improve the SPI. Action!”
(5) “So often we report (puke) data, we diligently produce (puke) dashboards, we lovingly create (puke) slides. But it is rare that our efforts drive action.”
Now I’m absolutely certain you need to get over to the article and discover the context. Don’t you Of course you do.
After you read it, think about how you can put the actionable decrapified KPIs into an Action Dashboard. At first thought, I’d setup something like this.