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Measurement plays a crucial role in translating business strategy into results. Industry leaders in today's business world use balanced measurement systems to track customer and employee satisfaction as well as financial performance and operating efficiency.
The Metrus Group of Somerville, New Jersey, studied the value of using strategic measures. Its research defined a "measurement-managed" organization as one where senior management is in agreement on measurable criteria for determining strategic success and where managers update and review semiannual performance measures in significant performance areas. By comparing measurement-managed and non-measurement-managed organizations, the study indicates the value of measurement and provides valuable information for Government organizations as well.
If strategic measurement is so effective, why don't more organizations do it? Barriers often exist that make successful measurement difficult, including:
Developing successful measurement systems is a lengthy but rewarding process. Lessons learned by organizations with effective, balanced measurement systems include: