Wednesday, June 28, 2017

The New Book “Performance Master” Conclusion: Setting Performance Indicators to Measure Return on Digital Transformation

It is important to measure the right things, and measure them right.

The digital transformation is now spreading rapidly to enable organizations of all shapes and sizes to reinvent themselves, but is is the thorny journey with many bumps and curves on the way. Digital transformation is now affecting all aspects of business operations from innovation within and around business ecosystem. A well-defined set of measurements for digital transformation should contain a good mix of the long-term strategic measures along with the short-term operational measures. How do you measure return on digital transformation in order to make the timely adjustment and improve its success rate?


Return on innovation: Innovation is the core business capability of digital organizations. Hence, it’s important tos set guidelines for developing a customized suite of innovation metrics. The goal for the innovation measurement is to create new revenue and drive early success to create a positive spiral. Making business measurement is both art and science, measuring innovation is even more challenging. Unfortunately, most innovation indicators are flawed and present limitations. Also, the innovation indicators vary depending on who is doing the measuring, and how they are measuring, it’s contextual. You choose the right set of KPIs by deciding which are seen as critical to making the trackable progress in order to deliver more innovation.


Return on employee engagement: Digital is the era of people. There are two types of measurement of employee engagement; the first type of measurement of employee engagement in the workplace is through the outcomes of productivity or creativity. The second type of assessment is through the performance drivers. The metrics for talent management improvement and innovation include engagement, cost control, return on incentives, recruiting efficiency, speed in revising performance objectives, clarity of organizational structure, the depth of backups in succession plans, the culture of creativity measurement. By tracking these measures, you can focus on where targets are not being met that support planned profit levels, and what actions should be taken to improve at individual, functional and organizational level.


Return on digital maturity: Digital transformation extends to every directions of the organizational management. Historically, performance measurement systems for most businesses have been financing driven. However, in many business situations, financial indicators only cover part of the story. The effective measurements selected should be part of a link of cause-and-effect relationships. It must be constantly reviewed and improved. Outcome-related KPIs are relevant, even more relevant than process-related KPIs, in order to measure the end to end business performance effectively.




Digital transformation is a journey. Well-defining the right set of metrics will never be an easy job. It is important to measure the right things, and measure them right, for encouraging positive behaviors, breaking down silo thinking, leveraging trade-offs, to ensure the business as a whole achieving the optimal business result and manage a seamless digital transformation.

The "Performance Master" Book Amazon Order Link

The "Performance Master" Book B&N Order Link 

The "Performance Master" Book Introduction Slideshare

The "Performance Master" Book Preview

The "Performance Master" Book Introduction 

The "Performance Master" Book Chapter 1 Introduction

The "Performance Master" Book Chapter 2 Introduction

The "Performance Master" Book Chapter 3 Introduction 

The "Performance Master" Book Chapter 4 Introduction 

The "Performance Master" Book Chapter 5 Introduction 

The "Performance Master" Book Conclusion

The "Performance Master" Quote Collection I

The "Performance Master" Quote Collection II


The "Performance Master" Quote Collection III

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