ABSTRACT
Practically every organization has some type of problem with its measurement system. Some need only a minor tune-up, whereas others need a major overhaul. This chapter examines some of the most typical problems that occur in an organization's approach to measuring performance. These include having too much data, focusing on only short-term measures instead of longer-term measures such as customer satisfaction and product/service quality, too much summarization of data risks making them meaningless, measuring things that can be counted, and selecting the wrong measure on which to focus. Focusing exclusively on measures of individual performance is a common but detrimental practice in an organization that is attempting to foster a spirit of cooperation and sharing. In these days, when downsizing is one of the favored corporate strategies for profit improvement, many organizations require each manager to rank her staff from best to worst after evaluating each one’s performance.
