KPMG’s Emerging and Traditional Measures Questions

Traditional Measurement Needs

  • 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?


  • 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?


  • 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?


  • 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

  • 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?


  • 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?


  • 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?


  • 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 / KPMG

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