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Core Performance Measures
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Strategic Analysis Best Practice 1 – Integrity Without Excuses
For any strategic analysis to be effective, it must be done with an open, honest assessment of the facts. Organizations acting with integrity without excuses seek to identify and eliminate instances where fact-based assessment conclusions are diluted by unrelated factors or opinion-based influences. This mitigation often seeks to justify action perceived as desirable when the fact-based evidence would suggest another course. Justification is frequently based on business factors that are not specifically value related or biases lacking a relevant performance basis.
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Additional Information
Additional information regarding strategic analysis can be found in the StrategyDriven whitepaper series Strategic Planning.
About the Author
Karen K. Juliano is StrategyDriven‘s Editor-in-Chief and Vice President of Communications and Marketing. Prior to joining the StrategyDriven team, she helped produce weekly programming for a Public Access Television station and served as a production assistant in the public affairs office at United States Naval Base, Philadelphia. To read Karen’s complete biography, click here.
Common Construction Characteristics
The benefits of vertically cascaded and horizontally shared performance measures are maximized when the related measures share a common set of characteristics. Common construction of vertically cascaded measures enables easy roll-up of lower tiered measures to create higher tiered benchmarks.
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Horizontally Shared
Well-constructed performance measurement systems provide a means of comparison between various products, services, and business units by ensuring relevant measures are horizontally shared across the organization.
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Vertical Cascading
Performance measurement systems should be anchored on the single measure of organizational success (defined by the organization's mission) and vertically cascaded down through the organization Each successive measurement tier becomes more specific than its predecessor with the lowest tier describing individual contributor behaviors and resulting outcomes.
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