Abstract

Performance metrics can have both good and bad impacts on an organization. In order to maximize the good while minimizing potential damage, the organization must make sure they have the right metrics, use them appropriately, and revise them occasionally to account for changes that affect their usefulness. Selecting and using metrics is a fundamental aspect of managing organizational performance. The right metrics will be useful only if the resulting information is made available to people who can act on it. Another consideration is that metrics should be biased toward business drivers instead of outcomes.