ABSTRACT
Organizations conducting a strategic analysis or developing a strategic plan must incorporate performance metrics as a method of analyzing overall organizational performance. Traditional finance-based measures place an unbalanced importance on short-term results. Therefore, both financial and nonfinancial measures should be considered to achieve the long-term vision of the organization. Individuals within the organization need to be evaluated in areas and behaviors that they are responsible for and for what they control. All metrics must be meaningful, align with the organization’s primary goal of customer satisfaction, and drive the organizational activities in the same direction. To attain this ultimate goal, it is imperative that all organizations know and understand their customers. Performance metrics, utilized to evaluate an individual manager’s performance, must be developed to ensure that attainment of the desired performance at the individual manager level will lead to the organization itself meeting its own performance objectives.
