The five traps of performance measurement
Author: Andrew Likierman
Journal: Harvard Business review
Year: October 2009
Source: Harvard Business review
Publisher: Harvard Business review
"Difficult and boring-my favorite combination." If this is your reaction to the challenge of improving the measurement of your organization's performance, you are not alone. Most senior executives find it an onerous if not threatening task. Thus they leave it to people who may not be natural judges of performance but are fluent in the language of spreadsheets. The inevitable result is a mass of numbers and comparisons that provide little insight into a company's performance and may even lead to decisions that hurt it. So how should executives take ownership of performance assessment? They need to find measures, qualitative as well as quantitative, that look past this year's budget and previous results to determine how the company will fare against its competitors in the future. They need to move beyond a few simple, easy-to-game metrics and embrace an array of more sophisticated ones. And they need to keep people on their toes and make sure that today's measures are not about yesterday's business model.
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