In today's climate of market uncertainty, companies are not likely to thrive with anything less than a highly focused measurement system. To answer the inevitable "How are we doing?", an organization must have measures in place to ensure that performance improvements are actually materializing.
Leading companies use measures to communicate goals to staff, to identify early warning signals of problems, and to decide what corrective actions are needed. By providing timely and comprehensive performance information, managers may pinpoint the root cause of problems more quickly, set standards and targets, and better assess strategic value and effectiveness.
Along these lines, forward-thinking leaders establish performance measurement as a dynamic system, poised to transform their companies into lean, more customer-responsive operations. This benchmarking tool focuses on the key performance indicators (KPIs) for measuring organizational performance. Areas of focus include:
- Reinforce strategy
- Shape culture
- Implement scorecard
- Communicate results
- Reward performance