CHAPTER9EPG Performance: BeyondTime, Cost, and Quality

When driving a car, a glance at the dashboard provides feedback data on the vehicle’s performance. Speed, fuel levels, and engine temperature are shown on the gauges, and a GPS gives directions for the most convenient and efficient route. The input destination to the GPS corresponds to an organization’s strategy because the strategy defines where an organization wants to go. To get there, companies require guidance and gauges to help measure the progress along the way. The importance of performance measurement is summed up by Peter Drucker: “What gets measured gets done, what gets measured and fed back gets done well, what gets rewarded gets repeated.”

Once a specific strategy is determined, ...

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