6. Performance Measurement

In Chapter 2, “Demand Forecasting as a Management Process,” I introduced the phrase, “What gets measured gets rewarded, and what gets rewarded gets done.” Although I would like to claim 100% credit for this sublime piece of wisdom, I cannot, in good conscience. I first heard it from my colleague Tom Mentzer, and we used it extensively in our 2004 book.1 This phrase complements, and expands upon, the phrase attributed to Peter Drucker, or maybe Edwards Deming that I also quoted in Chapter 2: “If you can’t measure it, you can’t manage it.” I made the point then that because demand forecasting is a management process, like any other, it cannot be properly managed if it cannot be properly measured. For this reason, a book ...

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