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Measuring Performance by Harvard Business School Press

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Step 2: Gathering Performance Data

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In the second step of the performance measurement process, you gather and check the reliability of data on the metrics you’ve identified. Start this phase by setting targets for each metric you’ve defined.

Setting targets

Targets represent the performance you want to see on each of your metrics. Table 4 gives examples.

Setting targets is a bit of an art. For example, you want to set targets that inspire people to deliver exceptional performance. But you don’t want to set targets so high that your direct reports assume they can’t reach them—and so don’t bother trying. In addition, you have to figure out what ...

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