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 Practice – Vertical Cascading by StrategyDriven Contributors
• Best Practice – Horizontally Shared by StrategyDriven Contributors
• Best Practice – Common Construction Characteristics by StrategyDriven Contributors
• Best Practice – Core Performance Measures by StrategyDriven Contributors
• Best Practice – One Source of the Truth by StrategyDriven Contributors
• Best Practice – Diverse Indicators by StrategyDriven Contributors
• Best Practice – Documenting Performance Measure Drivers by StrategyDriven Contributors
• Best Practice – One Change at a Time by StrategyDriven Contributors
• Best Practice – Predefined and Reinforced Data Standards by StrategyDriven Contributors
• Best Practice – Get Data Directly from the Source by StrategyDriven Contributors
• Best Practice – Predefined Action Thresholds by StrategyDriven Contributors
• 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
• Warning Flag – Data Source Manipulation by StrategyDriven Contributors

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 – 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
• Types
• Selection
• Construction

Resources

Books

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

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