Avoiding the Performance Trap: Measuring Your Achievements, Not Your Activity

Article

Ross, Michael J.   (1998, ASQ)   customer-eyes, Wellington, New Zealand

Annual Quality Congress, Philadelphia, PA    Vol. 52    No. 0
QICID: 10712    May 1998    pp. 407-413
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Article Abstract

Inadequacies in productivity improvement can be traced to inappropriate performance measurements. The full transaction costs of satisfying consumer expectations is what needs to be measured, so that performance is considered both an output and an outcome. When performance measurement is narrowly focused on financial or on process performance, then improvement efforts are likely to be inefficient and ineffective. To avoid the performance trap, an organization should have a vision, upon which is built a strategy and the tactics that implement the strategy. Therefore, critical elements of performance measurement include vision, leadership, personal ownership of measures and solutions, and accountability for achieving objectives. Achievement must be measured, and it must be linked to vision and corrective action.

Keywords

Measurement and control,Vision,Strategic planning


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