Transforming Corporate Performance: Measuring and Managing the Drivers of Business Success

By Michael A. Milgate | Go to book overview

2
Performance
Measurement
Frameworks

THE CONTEXT FOR FRAMEWORKS
Three words recur throughout this book as desirable attributes for strategic performance measurement: focus, balance, and integration. Focus has both strategic and operational dimensions in defining direction, capability, and what the business or its activities are all about. Balance implies seeking an equilibrium for making sense of the business and strengthening focus. Integration is critical as it ensures the organizational effort fits into some form of sustainable response to strategic priorities and change.It follows that the use of balanced frameworks for understanding and pulling together these three attributes is a first principle in attempting to rethink or introduce strategic performance measurement. Without the coherence of a framework, effort tends to dissipate and outcomes are diminished. This was the rationale for the emergence of performance measurement frameworks in the 1990s.Performance measurement frameworks are systemic and relate to different purposes and contexts, from the predictive and descriptive to the prescriptive and within strategic,1 process, and operations contexts. The value of these frameworks lies in:
Encouraging a rigorous strategic review or analysis, which shapes the organization's destiny in the light of turbulent business conditions

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