This article presents four principles by which executives can ensure their organizations’ measurement systems and measurement-driven processes support organizational alignment and cohesive action. These principles have been derived both from a review of the academic research literature and from implementation of systems of measures in a variety of companies. To be able to generate superior performance, companies need to (1) implement a decision-oriented model of controllable performance, (2) estimate the performance potential for all elements of the model, (3) assign responsibility for all the drivers of performance, and (4) develop a common language of performance that relates operational performance measures and managerial responsibilities to corporate performance objectives, at all levels in an organization.
Authors: David S. Crandon, Kenneth A. Merchant
Source: International Society for Performance Improvement
Subject: Management
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