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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.

36 Stories
88 Hacks
4 Barriers

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.

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Cost Accounting chokes business by focusing on parts rather than the relationship between parts. As the primary feedback mechanism for business and organizations it leads to bad decisions.
Hack by Dan Strongin on March 19, 2011
With globalization and technology, skills become obsolete rapidly. The traditional approach of performing specialist work is less effective.
Decision makers change organizations from time to time.Organizations come and go.Instead of measuring whole organizations, measure the impact of the decision makers.
Hack by David Rader on March 14, 2011
To be innovative, a company needs to understand how it can take what it already does and do that better.
Hack by Ryan Thorpe on March 11, 2011
Both economic thought and management practice are based on the so-called free market economy or competitive markets and all measures of performance or success are always relative.To get out of this "c
Hack by Srinivasan Abhinavam on February 9, 2011
Recruiting doesn’t work.  It has never worked.  The advent of the Internet has only exacerbated the problem.  Hiring managers have no respect for their internal recruiters and 3rd party
Hack by Carol B Schultz on December 20, 2010
Measure employee performance like a credit score.  Similar to someone missing a mortgage payment, but it’s more like missing a project deliverable.
Hack by John Heyliger on December 15, 2010

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