Merely establishing measures is not enough; if we are going to manage the organization as a system, we must have:
Sound measures that ensure we are monitoring the right things
A total measurement system, not a collection of unrelated—and potentially counterproductive—measures
A performance management process that converts the data provided by the measurement system into intelligent action
Based on our experience, we would like to suggest some guidelines in each of these three areas.
What we want to measure is performance—that is, output—at all three levels. Regardless of the level (Organization, Process, Job/Performer), we recommend that measures ...