Surprisingly few executives use data from their own organizations to test their assumptions about what factors drive financial performance. By gaining new insights into performance relationships within their own companies, managers can develop smarter strategies.
Managerial decisions are based on assumptions about the relationships between different aspects of performance. Investments in employees, for example, are often predicated on the assumption that well-rewarded and engaged employees deliver higher levels of service, resulting in customer loyalty that enhances financial performance. Some of the core assumptions about what drives financial performance ...