Strategic Performance Measurement
"Tell me how you're going to measure me, and I'll tell you how I'm going to act".
The way in which business performance is measured has a very strong impact on how people in the business behave and the decisions they make. Recent high-profile failures in the finance sector are clear and frightening examples of performance measures driving the wrong type of behaviour, sacrificing long-term value creation for short-term financial gains. In these most extreme of examples, this can bring about the demise of a company. More typically, it can be responsible for lacklustre performance; stifling innovation, rewarding mediocrity and causing stagnation within the business.
Performance measurement is one of the cornerstones of business excellence. Business excellence models encourage the use of performance measures, but in addition and more importantly, they consider the design of performance measurement systems to ensure that measures are aligned to strategy, and that the system is working effectively in monitoring, communicating, and driving performance.
The Business Base AID package is a three-step approach to performance measurement designed to ignite business performance at all levels:
- Aligning performance measures with business strategy, structures and corporate culture
- Identifing which type and number of measures to use
- Deploying the measures so that the results are used and acted upon
We work with management teams to identify the critical performance drivers, define winning performance measures and implement a performance measurement structure that motivates everyone in the business towards continuous improvement. Whether it be a balanced scorecard, corporate steering wheel or executive dashboard, Business Base has the expertise and experience to help you implement a powerful and compelling performance measurement strategy.