ABSTRACT
The two approaches that work when redesigning an organization’s measurement system are the top-down strategy and the individual location or unit strategy. The top-down approach works by starting with the CEO and her direct reports to develop a set of macro metrics for the entire organization. Different organizations have different meanings for terms like vision, mission, values, and similar terms. The vision statement is the one guiding document that usually needs the most surgery. A situation analysis is typically done as part of the organization’s annual or strategic planning processes. When brainstorming measures, make sure that the team looks at the key success factors as stimuli to help think of good measures. The company also felt that it needed better measures that related to customer and employee satisfaction. The customer perspective includes hard measures like repeat business and on-time delivery, as well as softer measures like customer satisfaction.
