Abstract: The present invention comprises a method of relating characteristics gleaned by monitoring application transaction flows (and the decomposition thereof) to produce performance metrics useful to characterize the efficiency and performance of web transactions used in a web-based application. These metrics can assist application designers and developers in reorganizing their application content, programs, and transports to provide improved service to their consumer. Events are generated and composed into predefined activities on a web transaction basis. The performance metric is then derived that entails a relationship between at least two different activities that gives insight into the performance characteristics of the web transaction. By using the derived performance metrics, designers and developers of web pages can judge the effects of changes to their application relative to efficiency and performance. Different applications can also be compared and contrasted using these metrics.