Strategic measurement should be determined on the basis of quantification. This means that to assess the performance of an organization, the set measures must be objective and not subjective. Thee quantifiable measures are used to gauge the performance in terms of meeting the set objectives. The second determinant is that the measure must be understandable. Easy-to-read charts and graphs that can be quickly consumed are the fundamental concepts of comprehending the organization performance within a short period of time. A measure that has a focus and direction enables the organization to register success. This means that the measure must be actionable; this means that any measure that is selected should have a certain impact on the organization. Employees must be in a position to feel and influence the measure through normal work project that is in progress. The fourth determinant is the measure should be repeatable whereby it should not apply once. Annual assessments help in keeping track of the progress the company is making so as to measure and analyze critical trends in the subsequent years. Lastly, the measure must be timely, this shows that the strategic measures should be lensed annually, and at the most, monthly. Failure to assess regularly prone the organization unable to tie the measure with the strategic plan (Nuthall, 2003).
Guidelines to follow when choosing the measures and strategic drivers
• The organization must ensure there is one outcome measure for each strategic objective both in the financial and customer perspectives.
• Putting into considerations that the strategic drivers are allocated predominantly to the learning and growth and internal perspectives of the organization
• If there is a probability of one measure being more practical than others, the applicable measure, in this case, must best communicate the meaning of the objective.
• The organization should not create more measures than enough to handle. Anymore measure than 1-2 makes it hard for the organization to assess its progress because measures have conflicting performance (Keller and Kar, 2006).
Keller, A., & Kar, G. (2006). U.S. Patent No. 7,096,459. Washington, DC: U.S. Patent and Trademark Office.
Nuthall, L. (2003). Supply chain performance measures and systems. Gower handbook of supply chain management. Burlington, VT: Gower Publishing, 248-66.
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