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Measuring Performance by Harvard Business School Press

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Understanding Key Performance Indicators

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Some companies have formal, enterprisewide performance measurement systems in place (such as Six Sigma, the Plan-Do-Check-Act methodology, or the Balanced Scorecard). Such systems enable executives to look across the organization’s business activities to gain a holistic view of the company’s performance. Other companies use a simpler approach, appraising the performance of one or more discrete aspects of the business.

Regardless of the system a company uses, all organizations use key performance indicators to assess their performance.

If you’re not keeping score, you’re only practicing, not playing.

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