Organizational Performance Measures – Introduction

Performance measures serve to align an organization’s efforts to the achievement of its mission. As part of a company’s evaluation and control program, they quantifiably monitor important characteristics of the company’s products and services and the performance of the individuals and processes creating them. Performance measures support managerial decision-making by providing useful information regarding:

• how efficient and effective are the company’s processes and the individuals implementing them
• if product or service improvements are necessary
• if the company’s customers and stakeholders are satisfied
• if the company is meeting its stated goals

Performance measures best serve an organization when they are understandable, broadly applicable, uniformly interpreted, and economic to apply. They should cascade through and organization’s hierarchy such that achievement of lower tiered performance goals support higher tiered goals that in turn ultimately support achievement of the company’s mission.

Focus of the Organizational Performance Measures Topic

This topic will focus on the principles, best practices, and warning flags associated with the leading practices of companies that successfully use performance measures to drive organizational alignment, accountability, and operational performance. The following articles, podcasts, documents, and resources cover those topics critical to a strong performance measurement system.

Articles

Best Practices

• Best Practice – Vertical Cascading    [StrategyDriven Premium Content]
• Best Practice – Horizontally Shared    [StrategyDriven Premium Content]
• Best Practice – Common Construction Characteristics    [StrategyDriven Premium Content]
• Best Practice – Core Performance Measures    [StrategyDriven Premium Content]
• Best Practice – One Source of the Truth    [StrategyDriven Premium Content]
• Best Practice – Diverse Indicators    [StrategyDriven Premium Content]
• Best Practice – Documenting Performance Measure Drivers    [StrategyDriven Premium Content]
• Best Practice – One Change at a Time    [StrategyDriven Premium Content]
• Best Practice – Predefined and Reinforced Data Standards    [StrategyDriven Premium Content]
• Best Practice – Get Data Directly from the Source    [StrategyDriven Premium Content]
• Best Practice – Predefined Action Thresholds    [StrategyDriven Premium Content]
• Best Practice – Multiple Action Thresholds    [StrategyDriven Premium Content]
• Best Practice – Identify the Measures First    [StrategyDriven Premium Content]
• Best Practice – Run New and Old Performance Measures in Parallel    [StrategyDriven Premium Content]
• Best Practice – Map Performance Measure Ownership    [StrategyDriven Premium Content]
• Best Practice – System Development    [StrategyDriven Premium Content]

Warning Flags

• Warning Flag – Data Source Manipulation    [StrategyDriven Premium Content]

StrategyDriven Expert Contributor Articles

• The New Thinking on KPIs, part 1 of 4 by David Parmenter
• The New Thinking on KPIs, part 2 of 4 by David Parmenter
• The New Thinking on KPIs, part 3 of 4 by David Parmenter
• The New Thinking on KPIs, part 4 of 4 by David Parmenter
• Eight Levels of Analytics by sascom Magazine
• The Unnoticed Analyst: Can analytics succeed while going unnoticed? by Thornton May

StrategyDriven Podcasts

StrategyDriven Podcast

• Introduction to Organizational Performance Measures
• Vertically Cascading Organizational Performance Measures, part 1 of 3
• Vertically Cascading Organizational Performance Measures, part 2 of 3
• Vertically Cascading Organizational Performance Measures, part 3 of 3
• Horizontally Shared Organizational Performance Measures
• Core Performance Measures
• One Source of the Truth
• Diverse Indicators

StrategyDriven Podcast – Video Edition

• Framework for Aligning an Organization

StrategyDriven Podcast – Special Edition

• An Interview with David Parmenter, author of Key Performance Indicators, part 1 of 2
• An Interview with David Parmenter, author of Key Performance Indicators, part 2 of 2

Documents

Whitepapers

• Alignment    [StrategyDriven Premium Content]
• Types    [StrategyDriven Premium Content]
• Selection    [StrategyDriven Premium Content]
• Construction    [StrategyDriven Premium Content]

Resources

Books

• Strategy Maps by Robert S. Kaplan and David P. Norton

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