ABSTRACT
The effective creation and use of metrics can be the difference between a business strategy that sits on a shelf collecting dust and one where an organization realizes its vision. This chapter discusses the purpose of metrics and several of the most common mistakes organizations make with metrics. It also discusses the recommended process for creating business metrics and how this process will assist in overcoming many of the mistakes and challenges associated with metrics. The Client Lifetime Value is the total amount of revenue predicted to be collected over the lifetime of the organization’s relationship with a specific client. The Client Acquisition Cost is the amount of money spent by a firm to activate a new client. The Project Acquisition Cost is the amount of money spent by a firm to obtain a new project. Keeping track of the number of proposals written can provide insight into possible proposal writing trends and deficiencies.
