|
 |
|
Performance Metrics
Key performance metrics are essential ingredients to managing and rewarding
performance.
We go back to the first few pages of Peter F. Drucker's "The Essential
Drucker" to learn that "neither the quality of the output nor the bottom
line is by itself an adequate measure of the performance of management and
enterprise."
- "Market standing, innovation, productivity, development of people,
quality financial results - all are crucial to an organization's
performance and to its survival."
- "Finally, the single most important thing to remember about any
enterprise is that results exist only on the outside. The result of a
business is a satisfied customer. --- Inside an enterprise, there are only
costs."
One quickly realizes working with smart companies that the framework for
workable performance metrics consists of four broad sectors:
- Market value - performance metrics that clearly establish changes in
the tangible and intangible market (or book) value
- Internal enterprise improvement - metrics that track impact of
innovation, productivity, expenses and the development of people
- Positive financial indicators - financial metrics that resonate with
the direction and operation of the enterprise
- Customer satisfaction - believable metrics that track the level of
customer satisfaction
Developing good performance metrics on which to base workable performance
and compensation management systems is not brain science.
- It requires infinite knowledge of the enterprise's direction and
operations
- It requires clear knowledge of how people work
- It requires a distinct articulation of metrics to the investing or
controlling public
The HARLON GROUP incorporates proven methodologies in creating the level
of understanding necessary to create performance metrics that meet this
litmus test. |
|
 |