The value of organizational performance measures isn’t simply that they inform leaders and individual contributors of past and present state performance; rather, the power of performance measures comes from the actions they drive to improve future results. Therefore, organizational performance measures are most effective when they indicate when specific actions should take place. Predefined thresholds accomplish this objective.
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Additional information regarding the organizational performance measure thresholds can be found in the StrategyDriven whitepaper series Organizational Performance Measures.