Argues that a system must be integrated (linking strategy to operations) and multi-dimensional (looking beyond just finances) [1, 2].
Identify key stakeholders and define the strategic objectives. What does "success" look like?
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...
Measuring things that look good on paper but don't actually drive strategic value. 4. Implementation Checklist Does every metric link back to a strategic goal ? Is there a clear owner for every KPI?
Set up the data collection methods. Who owns the data? How often is it reported? Argues that a system must be integrated (linking
Measuring too many things leads to "analysis paralysis." Focus on the "Vital Few" rather than the "Useful Many."
Below is a guide structured around the theoretical foundations and the practical steps to build one. 1. Theoretical Foundations The system shouldn't just tell you if you
Relying solely on financial data (lagging indicators) while ignoring customer satisfaction or employee growth (leading indicators).