StrategyDriven

Performance measurement systems should be anchored on the single measure of organizational success (defined by the organization’s mission) and vertically cascaded down through the organization.  Each successive measurement tier becomes more specific than its predecessor with the lowest tier describing individual contributor behaviors and resulting outcomes.

A vertically cascaded performance measurement system drives alignment to the organization’s mission.  The well-constructed system clearly communicates and routinely reinforces performance and behavioral expectations to every member of the organization.  Individuals assume responsibility for the measures which their actions and decisions effect.  Over time, the measures reveal the impact of each individual’s performance at their level of the organization.  As these measures are rolled-up, the individual’s contributions, both positive and negative, to higher tiered goals and ultimately the success of the company becomes evident.

Additional Information

Additional information regarding the vertical cascading of organizational performance measures can be found in the StrategyDriven whitepaper series Organizational Performance Measures. Whitepapers are available to Registered Members and registration is FREE! If you have not already registered, please do so and join the conversation.

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