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Capability metrics vs growth metrics: measuring what matters

28 December 2024
5 min read

Organisations often conflate two different types of measurement: capability metrics (can people do the thing) and growth metrics (is the business growing). Both matter, but they measure different things and require different approaches.

The problem

  • Training teams are asked to prove business impact when their job is building capability.
  • Marketing teams are measured on leads when the real goal is revenue.
  • Nobody agrees on what success looks like because different stakeholders want different metrics.
  • Dashboards are full of data but nobody knows what to do with it.

The framework: The Metrics Hierarchy

Metrics should be organised in a hierarchy: activity metrics (what we did), capability metrics (what people can do), and outcome metrics (what the business achieved).

  • 1Activity metrics: Training sessions delivered, campaigns launched, content produced. These are inputs.
  • 2Capability metrics: Adoption rates, competency scores, behaviour change. These measure whether people can do new things.
  • 3Outcome metrics: Pipeline, revenue, efficiency gains. These measure business results.

Practical steps

  1. Match metrics to goals. If the goal is capability building, measure capability. If the goal is revenue, measure revenue.
  2. Build the chain. Show how activity leads to capability leads to outcomes. This builds credibility.
  3. Set realistic expectations. Enablement teams should not be held accountable for sales results they cannot control.
  4. Measure leading indicators. Do not wait for lagging outcomes. Track early signals that predict success.
  5. Report honestly. If results are mixed, say so. Credibility comes from honesty, not spin.

Common mistakes

  • Measuring activity when you should be measuring outcomes.
  • Expecting immediate business impact from capability-building investments.
  • Using vanity metrics that look good but do not drive decisions.
  • Measuring too many things and losing focus on what matters.
  • Not connecting metrics to decisions. If a metric does not change behaviour, why track it?

Conclusion

The best measurement approaches are clear about what they are measuring and why. Capability metrics tell you whether people can do new things. Growth metrics tell you whether the business is achieving results. Both are valuable, but they serve different purposes. Getting this distinction right helps you set appropriate expectations, make better investments, and have more productive conversations about performance.

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