An executive primer to performance measures that drive improvement
Every organization has its favorite metrics - measurements that gauge control, progress, and success. At a world-class organization, these measures serve as a common "performance language" that links corporate strategy, divisional goals, plant targets, departmental budgets, and individual incentives into a unified, results-oriented system. But at a mediocre or failing organization, these measures usually turn into management babble and confusion - reams of records and disjointed findings tracked simply because "that's what we've always done." Metrics at these organizations become straitjackets - restraints that actually waste resources, aggravate employees, and block improvement.