Systems: Theo... | Designing Performance Measurement

Argues that a system must be integrated (linking strategy to operations) and multi-dimensional (looking beyond just finances) [1, 2].

The system shouldn't just tell you if you hit a goal, but also help you question if you are measuring the right goal [1]. 2. Practical Design Steps Designing a system typically follows a four-phase process: Key Actions 1. Design Designing Performance Measurement Systems: Theo...

Relying solely on financial data (lagging indicators) while ignoring customer satisfaction or employee growth (leading indicators). Argues that a system must be integrated (linking

Set up the data collection methods. Who owns the data? How often is it reported? Practical Design Steps Designing a system typically follows

Regularly audit the system. Metrics can become "stale" or encourage the wrong behaviors. 3. Common Pitfalls to Avoid

Use the data to manage the business. This is where you review results and make decisions.

Identify key stakeholders and define the strategic objectives. What does "success" look like?