Establish a strong correspondence between performance measures and the strategy by incorporating predictive measures into the system. Simple structures will yield the most effective performance measurement systems. Focus the measurement system on a single idea or theme one that is easily grasped theme or represents a key goal to ensure that the organization comprehends the link between performance measures and the business strategy. Consider a continuous, or closed-loop, measurement system. Align measures at the operational, or local, level in the organization and across processes.
Local measures are more actionable, and employees have a better understanding of their importance.
Use a variety of approaches to obtain buy-in. Malcolm Baldrige National Quality Award criteria, for example, can communicate measures and motivate employees. Gather information for performance measurement systems from outside sources, such as customers, distributors, suppliers, etc. Implementing and Operating the Performance Measurement System Performance measures provide data to support other internal quality systems that enable change. The analysis of accessible, real-time data is the actual source of competitive advantage not the measure itself.