Final answer:
An effective metric in business is a clear and concise metric that defines and measures specific aspects of performance or achievement. It should be specific and measurable.
Step-by-step explanation:
An effective metric is a clear and concise metric that defines and measures a specific aspect of performance or achievement. In business, metrics are used to evaluate the success of various processes and initiatives. For example, a business might use a metric such as sales revenue to measure the financial performance of a product or service.
To create an effective metric, it should be:
- Specific: Clearly define what is being measured, such as a specific outcome or behavior.
- Measurable: Quantify the metric so that progress or achievement can be observed and tracked.
By defining and measuring specific aspects of performance, effective metrics provide valuable information for decision-making and improvement in business.