Chapter 12. MEASURING PERFORMANCE AND DESIGNING A PERFORMANCE MANAGEMENT SYSTEM

If performance isn't being measured, it isn't being managed.

—Unknown

Measurement is the foundation for Process Management and for "managing organizations as systems," which make up the continuous improvement infrastructure introduced in Chapter Ten as Phase 4 and described in Chapter Thirteen. The primary tool for communicating direction, for establishing accountability, for defining roles, for allocating resources, for monitoring/evaluating performance, for linking the Three Levels, and for taking improvement action is measurement.

The selection of measures and related goals is the greatest single determiner of an organization's effectiveness as a system. For example, ...

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