Why Leaders Should Reconsider Their Measurement Systems

Topics:
Organizational Effectiveness
Tags:
Leader,
Leadership,
Management,
Measurement System
Source:
Leader to Leader Institute

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Overview: This article describes why leaders should reconsider their measurement systems. The executives meticulously examined a list of measures that was notable for its breadth: customer satisfaction, sales closure ratio, market share, order fulfillment time, employee satisfaction, working capital, service cost per customer, customer retention and return on equity. Some of these numbers described overall company objectives, some were operational metrics, and some were miscellaneous items. The measurement system did not connect the numbers to each other in a meaningful way or provide executives with any guidance as to how to improve them. Most measurement systems were not designed for leaders. The new measurement system is able to reveal the sources of performance inadequacies in an organization.

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Format: HTML | Date: Apr 2002 | Pages: 1

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