Thoughts on Business Measurement (cont’d)
- Inefficient mechanics of planning and reporting
- Plans and measures not aligned with organization strategy and goals
- Focus primarily on output measures
- Information and reporting cycles not linked to business cycle
- Plethora of spreadsheets and fragmented data stores
- Information not easily accessible for employee action
- Managers manage “around” plans
- Employee goals and appraisals not linked to business objectives
- Weak linkage between individual performance and rewards
- Efficient process focused on analysis and value addition
- Measures are a key communication and commitment mechanism
- Measures and information accessible and used by all levels of the organization
- Continuous or dynamic planning, responsive to environment
- Measures linked to organizational priorities
- Budgeting process develops commitment to priorities
- Employee goal setting and performance appraisal develops commitment to organizational goals
- Rewards are linked to performance
Future Vision…Performance Commitment