Efficiency and Effectiveness Metrics

Managers measure the progress of a complex business project using metrics. Metrics are measurements that evaluate results to determine whether a project is meeting its goals. In addition to critical success factors and key performance indicators, managers also look at efficiency and effectiveness to determine the extent to which a firm is using its resources in an optimal way and how well a firm is achieving its goals and objectives.

The goal of this activity is for you to demonstrate your understanding of efficiency metrics and effectiveness metrics.

Instructions: Identify each item as either an efficiency or effectiveness metric.

Usability

Effectiveness metric $vv$

Throughput

Transaction speed

Customer satisfaction

Conversion rates

System availability

Financial

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Information accuracy

Response time

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