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Measuring Performance by Harvard Business School Press

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Step 1: Deciding What to Measure

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In the first step of the performance measurement process, you decide which aspects of your group’s performance you want to measure. You define your objectives, critical success factors (CSFs), and performance metrics.

If your company uses a formal performance measurement system, senior managers in the organization or the unit supervising the PA system may already have defined one or more of these elements for your group. The performance data you gather must then be in a form that’s compatible with the companywide system.

If your organization does not have a formal PA system and you want to track performance on ...

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