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.
Organizational 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 an 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.
The StrategyDriven Organizational Performance Measures Forum focuses on the leading practices of companies that successfully use performance measures to drive organizational alignment, accountability, and operational performance. Subscribing to this forum provides access to its principles, best practices, and warning flags articles and associated documents.