Develop holistic performance measures
“We need new measurement systems that capture the things that really create value.”
A shortlist of the limitations of traditional measurement systems:
(1) they’re lopsided, in that they overweight the achievement of certain outcomes (e.g. short-term earnings), while under-weighting the achievement of others (e.g. building new growth platforms);
(2) they take insufficient account of critical externalities (e.g. the environmental and social costs of corporate policies);
(3) they give inadequate attention to the things that drive success in the “creative economy,” (e.g., the value of customer-authored innovation).
Organizations will need to create holistic measurement systems that capture the many, interrelated variables that drive success.
Develop holistic performance measures
“We need new measurement systems that capture the things that really create value.”
A shortlist of the limitations of traditional measurement systems:
(1) they’re lopsided, in that they overweight the achievement of certain outcomes (e.g. short-term earnings), while under-weighting the achievement of others (e.g. building new growth platforms);
(2) they take insufficient account of critical externalities (e.g. the environmental and social costs of corporate policies);
(3) they give inadequate attention to the things that drive success in the “creative economy,” (e.g., the value of customer-authored innovation).
Organizations will need to create holistic measurement systems that capture the many, interrelated variables that drive success.
