January 9, 2009
Performance metrics are a powerful tool of organizational change. The adage "What gets measured, gets done," is true. Companies that define objectives, establish goals, measure progress, reward achievement, and display the results for all to see can turbo-charge productivity and gracefully move an organization in a new direction.
Executives use performance metrics to define and communicate strategic objectives tailored to every individual and role in the organization. Managers use them to identify under-performing individuals or teams and guide them back on track. Employees use performance metrics to focus on what’s important and help them achieve goals defined in their personal performance plans.
But performance metrics are a double-edged sword. The wrong metrics can have unintended consequences: they can wreak havoc on organizational processes, demoralize employees, and undermine productivity and service levels.
This report explores the art and science of creating effective performance metrics, which are at the heart of any performance management system, including dashboards, scorecards, and individual performance plans.
Performance Management Video
Wayne Eckerson describes his perspectives on performance management for a book by Joey Fitts and Bruno Azziz of Microsoft. Download the .wmv video file.