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Effectively Managing Performance Measurement Systems
American Productivity & Quality Center (APQC), Sep 2004, Pages: 101
Organizations understand that in order to thrive in a competitive environment, they must make their processes deliver products and services better, faster, and cheaper. It is crucial for leaders to monitor performance in order to make correct and timely management decisions. Measurement is at the core of process and performance management and is a key enabler for developing and executing organizational strategies and business goals. Although much has been written about the actual design of measurement system frameworks, little light has been shed on the actual techniques used to manage these measurement systems once they have been implemented.
With this in mind, this report identifies organizations that have been successful at using their measurement systems to drive organizational performance and identify the key management strategies and activities that have driven their success. This report summarizes results from a study conducted to pull back the “magician’s curtain.” The study team discovered and compared the innovative and successful practices that take an organization beyond the development and static use of a performance measurement system to sustaining and actively using a performance measurement system that encompasses enterprise objectives, individual behaviors, and business results.
Highlights of the Findings:
- Partners measure what matters to the organization.
- Partners embed their measurement systems in their daily operations.
- Partners reflect the maturity of their business models within their measurement systems.
- Partners’ measurement systems are flexible.
- Partners embrace simplicity in their organizational measurement systems.
- Partners effectively managed change while developing their current measurement system.
- Partners use the measurement system as a vehicle to communicate performance of the enterprise, operations, and individuals to employees.
- Partners’ measurement systems are an integral part of the organizations’ cultures.
- Partners have defined roles and processes for all measurement activity.
- Partners have a bias for action.
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