Keeping Your Measurement Process up to Date
Once your performance measurement system is in place and yielding results it is tempting to let it become part of the woodwork. Resist the temptation, it is dangerous. Your measurement system must reflect the current situation – if it does not it will lose credibility and, worse still, it will mean that new strategies are held back by the old performance measures.
In this chapter, we will describe the different ways in which you can keep your system up to date and negotiate some of the barriers that get in the way.
11.2 KEEPING THE PROCESS UP TO DATE
There are four main ways of keeping your performance measurement process up to date (see Figure 11.1). Starting from the bottom up these are:
1. Reviewing targets on a regular basis and updating them to reflect changes in budgets, increasing performance levels and changing customer requirements, as well as the results from competitor analysis or external benchmarking.
2. Developing the measures – as measures affect behaviour they need to be revised from time to time to overcome any dysfunctional behaviour and to reflect new circumstances.
3. Reviewing the success map and measures arising from it in line with changes in strategy.
4. Challenging the strategy – the initial success map ...