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The Barriers to Effective Performance Measurement

Seven basic barriers interfere with having a measurement system in place and functioning well:

1. If the basic business model is flawed, the organization will focus on the wrong levers of value creation and measure the wrong variables in developing the innovation. Microsoft has shown time and again its ability to observe, learn, and change its business model to adapt to market and technology changes.

2. Avoid measuring the wrong variables. One company that we worked with reported every financial number, down to the cent, but failed to measure cruc...