Building an evolving digital organization is to advocate the concept of “business as a whole is superior to the sum of pieces.” From a performance management perspective, if the majority of organizations in the industrial age are manipulated by silo thinking and hierarchical style, organizations lost their collaborative advantage as they are being over managed and under led, remain disconnected have change inertia and do not have the competence to collaborate in the long term.To avoid varying performance measurement pitfalls, you need to be able to gather the relevant information, ensure that digital performance measures are both qualitative and quantitative, and implement whatever mechanisms you need to be able to gather the relevant information, connect the contextual dots and focus on the overall business objectives and strategic goal
Key Takeaways
- It's fair to say that any organization that didn't have a systematic approach to measurement and analysis at both the strategic level and operational level has a giant blind spot that is impairing their performance.
- Wrong selection of key performance setting could get devastating effects on the business. Even if you choose the right KPIs, you must change them from time to time accordingly.
- Don’t just scratch the surface to manage the numbers, because often people do what you inspect, not what you expect. It is crucial that the KPIs selected have to be adapted to the specific objectives that you want to achieve.
- Assume the collective functional performance is equal to the sum of pieces - individual’s performance, or unit performance, which is not always the case.
- The one way to find out that the performance measurement setting is ineffective is by looking at the behavior and culture the KPI is driving.
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