“Even the best strategies do not implement themselves” is the pithy opening sentence of this article. The authors suggest that many management systems come up short because they focus too narrowly on measurements and results. Measurement is not management, as they put it. Instead, they argue in favor of the Booz-Allen system, Performance Management, that continuously analyzes decision-making and draws on intra-company relationships rather than delivering a bald account of good or bad results.
A model-based management system, Performance Management incorporates a number of effective tools and processes that focus on linking operating decisions to financial performance. The model is upgraded as the business evolves – and its information communicated to all levels of management. Among its attributes are the capturing of knowledge across a company’s business units which enables managers to emulate the successes of the best performers. In essence, therefore, Performance Management goes directly to the heart of a company’s behavior.
Authors: John K. Shank, Paul A. Branstad, Walter G. Jewett Jr.
Subjects: Consulting / Analytical Tools, Management