Traditional methods of measuring performance have been based on purely financial or productivity.
Today and since the late twentieth century, such indicators have failed to provide adequate information to take decisions and the health of an organization.
Following the development in the early 90’s, the “Balanced Scorecard” (BS) of R. Kaplan and D. Norton, what began as a new system of performance indicators, was transformed into what its authors describe today as “a strategic tool.”
This has facilitated the way towards a change of scenery in the performance measures.
The concept is to measure processes and show how it is measured with virtually all areas of a company, business or unit. It also provides a common framework for defining indicators.
On the other hand, learn not to measure the unnecessary or improper, thus avoiding the “bad measures” that lead to confusion and inappropriate behavior. Too many measures also are creating confusion.
Measure is not optional but a necessity to improve, motivate, innovate and deploy strategy to day to day. This leads to creating a system to:
- Measure what is necessary. Define the scope of each measure and its relation to objectives
- Design the measurement system and its hierarchy
- Establish indicators to performance.
- Select a minimum number of core measures and key indicators that are vital
- Assign responsibilities
- Achieve target of all efforts towards the strategy
- Measurement is key to the company.
- It’s not an option but a necessity:
- To improve
- To innovate
- to motivate
- to advance on strategic deployment
- There are good and bad measures
- What we measure affects behavior and organizational culture
- Measure to make sure that processes are simpler and more agile.
- Measure and improve to exit reinforced from the turbulence by implementing a vision “post-crisis.”
- Improve processes and reduce costs is to innovate, liberate working capital and dramatically increase productivity.
- Motivate to make a significant leap in the level of performance
- Introduction. Problems and solutions with the measures today.
- Principles. A framework for current measurements. Good and bad measures. A system of indicators: core and key.
- The core measures. Selecting hierarchy of measures. Responsibilities
- Binding measures and indicators with the organization. Measures as a strategic tool
- Models of excellence. Link measures to intangible assets and financial results.
- Implementation. The compensation schemes and incentives based on a new system of measures. Sustaining the improvements gained. Conclusions.