Constructing organizational performance measures addresses the practical side of building vertically cascaded and horizontally shared measures based on the principles discussed in earlier documents. Because performance measures facilitate decision-making within an organization, their construction is highly influenced by the needs of executives and managers in making decisions regarding the parameters being reflected by the measures. Therefore the qualities described herein focus on enhancing performance measure interpretation to speed condition recognition and promote appropriate, proactive response.

In this whitepaper, you’ll learn the principles of constructing high quality performance measures that support vertical cascading and horizontal sharing among organizational units. Note, however, that this document does not address the complex statistical properties associated with some performance measures. Knowledge of these principles is best obtained through formal training.

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