7 Performance Measurement
Companies need a new approach to performance measurement. As they strive toward world-class performance, the traditional methods of measurement become a hindrance. New measures are needed.
Big changes are taking place in Western industry, and these changes are happening fast. Traditional methods of measuring a company’s performance no longer apply. They measure the wrong things, and they mislead people. The issues that are important to world-class companies are:
- Quality
- Productivity
- On-time delivery
- Innovation
- Teamwork
- Flexibility
- Short cycle times
- Closeness to customers
Yet none of these issues is addressed by traditional management accounting measures.
As the needs and expectations of our customers change, so must ...
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