The Importance of MetricsAbstractEstablishing metrics is critical for any organization, especially in technology-related business projects. Metrics allow organizations to measure their performance against industry sectors to determine how well the company is doing. Additionally, metrics allow organizations to evaluate and improve the effectiveness and efficiency of their processes. Metrics are designated in different categories. Categories identified in this document include output, in-process, and people. (Duris 2003) The organization must first determine exactly what the company is trying to accomplish or determine. Metrics are then identified based on what is relevant to the topic. Finally, metrics are verified when tracking progress against previous records or standards or goals set by a company. Importance of Metrics Establishing metrics is crucial for any organization, especially in technology-related business projects. Metrics can be defined as a system of parameters or methods of quantitative and periodic evaluation of a process that is intended to be measured, together with procedures for making such measurement and procedures for interpreting the evaluation in light of previous or comparable evaluations. Metric results can be used to record trends, efficiency, capital, and so on. Metrics allow organizations to measure their performance against industry sectors to determine how well the company is doing. Metrics allow organizations to optimize their productivity. Metric Categories Metric categories differ based on the type of company and its objectives. An article written by Paul Germeraad (2003), details several segments of metrics used in measuring research and development processes that represent a critical technical competency. Each metric category is calculated or measured differently. Categories identified in the Measuring R&D 2003 article include outputs, ongoing processes, and people. Output metrics can come in tangible or intangible form.