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Measuring Performance by Harvard Business School Press

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Mentor’s Message: Why Measure Organizational Performance?

In an age of intensifying competition and rapid change, organizations must constantly seek to enhance their performance: their ability to generate important business results such as increased shareholder value, greater customer loyalty, more responsive and efficient business processes, and better productivity and alignment of their employees to strategic objectives. But you can’t manage what you don’t measure. How can executives determine whether the company is creating the conditions for greater shareholder value unless they track changes in their critical performance metrics over time?

As a manager, you play a vital role in measuring performance in your organization. For example, you ...

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