Measure vs. Metric

Sometimes BI discussions can get confusing with the amount of technospeak that occurs, subject matter terminology and the acronym du jour. Frequently we can find ourselves getting so caught up in the project that we tend to misuse terminology that can confuse other team members. I find measure and metric to fall into this category.

Many people use these terms interchangeably but they are wrong in doing so. Each term has its time and place in the conversation and we need to be cognizant of that when using them. There is always value in reviewing what these terms mean so that we keep on the straight and narrow path and reduce versus create confusion.

If you lookup measure in the dictionary there are over 20 definitions for its use as a noun alone. Another dozen or so for its use as a verb. But for sake of this post, we are referring to it as a noun. So what does it mean when a BI persons says we need a measure here on this dashboard?

What they are referring to is an operation for applying a number to something. As we create dashboards, scorecards, and other tools to track and measure our business data we are constantly defining and redefining our data and how to generate value from that data. Many times it may be filtering a larger collection of data down to a more specific level.

So now we have measure but what’s a metric? The word originates from pertaining to the system of measure based on a meter. Therefore a metric is our interpretation of the assigned number.

Businessintelligence.com has a great definition of metrics:

Metrics: When we use the term metric we are referring to a direct numerical measure that represents a piece of business data in the relationship of one or more dimensions.