Well-constructed performance measurement systems provide a means of comparison between various products, services, and business units by ensuring relevant measures are horizontally shared across the organization.
Horizontally shared performance measures, having consistent units of measure that are uniformly and precisely interpretable, enable comparison between products and services, divisions, departments, work groups, and individuals. Possessing these qualities and being cascaded from the organization’s mission, the contribution of each monitored item to the bottom line becomes evident. This arms executives and managers with the critical information needed to make decisions relative to existing and new products as well as individuals.
Additional information regarding the horizontal sharing of organizational performance measures can be found in the StrategyDriven whitepaper series Organizational Performance Measures and the StrategyDriven Podcast Horizontally Shared Organizational Performance Measures.
About the Author
Nathan Ives is a StrategyDriven Principal and Host of the StrategyDriven Podcast. For over twenty years, he has served as trusted advisor to executives and managers at dozens of Fortune 500 and smaller companies in the areas of management effectiveness, organizational development, and process improvement. To read Nathan’s complete biography, click here.
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