Emerging and Traditional Measures Questions

Traditional Measurement Needs
Financial

• Are we focusing on the right financial measures to judge the success of our company/divisions/units?
• How much of our value is reflected in our balance sheet? Do we have the right balance between financial and non-financial measures to address key intangible assets beyond the balance sheet?

Operational

• Do we have the right short-term operational measures in place to respond quickly when an activity central to the core business (around sales and delivery to customers) goes awry?
• To what extent do we measure both the effectiveness and efficiency of operational processes?

Operational

• How well do we measure and monitor shifts in customer needs and expectations?
• Do our operational teams clearly understand their role in fulfilling customer needs, and are they measured and provided incentives accordingly?

Employee

• Have we aligned compensation to our strategic objectives, and how is performance measured, rewarded, and recognized?
• Do we regularly measure employee satisfaction and take action with the results?

Emerging Measurement Needs
Market

• How well does our measurement system track changes in industry and external forces that impact the continuing relevance of our strategy/business model?
• What do we need to measure and monitor on an ongoing basis around existing and emerging competitor activities?

 Stakeholder

• Do we understand who our stakeholders are, what their needs and expectations may be, and measure how we are meeting those needs and expectations, as well as trade-offs between stakeholders? Do we fall prey to assuming we know what stakeholders want?
• How well do we measure and monitor shifts in stakeholder needs and expectations?

Strategic

• Do our measures align with and facilitate implementation of our strategy?
• Has the measurement system been reviewed/updated for recent events including strategic changes, acquisitions or divestitures, leadership changes, and industry or regulatory changes?
• Does the measurement system tell us if the vision/mission/strategy is “alive” and driving behavior in the organization?

Resource

• Do we have measures in place to tell us how well we are marshalling resources today and whether we have the right tangible and intangible resources to achieve our strategy?
• Do we have the right information to determine where we should be building and acquiring competencies (talent, alliances, distribution channels, software, etc.) for the future?

Source:
Achieving Measurable Performance Improvement in a Changing World
by KPMG

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