ABSTRACT
The focus of this chapter is strategic performance measurement, a key management system for performing the study (or check) function of Shewhart’s plan-do-study-act cycle. Strategic performance measurement applies to a higher level system of interest (unit of analysis) and a longer term horizon than operational performance measurement. While the dividing line between these two types of performance measurement is not crystal clear, the following distinctions can be made:
● Strategic performance measurement applies to the organizational level, whether of a corporation, a business unit, a plant, or a department. Operational performance measurement applies to small groups or individuals, such as a work group, an assembly line, or a single employee.
