Achieving Organizational Excellence through the Performance Measurement System

Effective performance measurement systems delineate cause and effect throughdirect linkage to organizational assessment and compensation processes.
• The most successful performance measurement programs are decentralized and havea formal process to "roll up" local data into the corporate measurement system.

Section 3: Communication

Communication and education are two of the most meaningful and essentialvariables affecting the success of performance measurement initiatives.
• Performance measurement systems employ a variety of technologies, most"homegrown," to provide accessible and useable information.

Section 4: Integration

• Leading organizations create a strong interdependence between their measurementsystem and other quality monitoring and management systems.Best-practice companies tie management incentives to bottom-line resultsmeasurements - most have a connection to variable compensation.

Section 5: Outcomes and Results

The use of routinely generated, real-time, online performance information makesmeasures actionable and drives change throughout the organization.
• Measures and goals must be reviewed, revised, and raised to keep the systemcurrent and effective.