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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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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.
Performance measures serve to align an organization’s efforts to the achievement of its mission. As part of a company’s evaluation and control program, they quantifiably monitor important characteristics of the company’s products and services and the performance of the individuals and processes creating them. Performance measures support managerial decision-making by providing useful information regarding:
The terms management and leadership are often used interchangeably and managers are frequently assumed to be leaders. Nothing could be further from the truth.
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