Savvy Managers Look To The Future: Not Just The Past - To Get The Perspective They Need To Influence
- Topics:
- Strategic Analysis
- Tags:
- Deloitte LLP,
- Human Resources,
- Indicator,
- Performance,
- Performance Management,
- Workforce Management
- Source:
- Deloitte Development
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Overview: As part of their performance management process, companies often rely heavily on historical information, or lagging indicators, to make decisions. Why? Because this information is clear-cut, readily available in information systems, and consistent with external reporting requirements. However, we believe senior decision makers would actually be better served by using information on current operations - information that drives, or can be correlated with, future performance. In other words, what we refer to here as leading indicators. Simply stated, leading indicators can provide greater insight into future performance and allow for more timely decision making. Leading indicators can be identified through understanding the cause-and-effect relationship between operational business drivers and the performance to be measured (usually financial).
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Format: PDF | Size: 262KB | Date: Jul 2008 | Pages: 3
