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Balanced Scorecard, Performance Management

Decide what you’re trying to achieve, then decide what you need to measure

Best Value BSCI am often asked to help Managers and teams with their approach to measurement of improvement and performance.  For some reason people seem to find it hard to decide what they need to measure.  The basic principle for choosing measurements is:

  • First, decide what you’re trying to achieve, then decide what you need to measure

The point is that measurements should track achievement against your objectives; it’s not simply about identifying things you could measure.  It’s also worth remembering the following rules:

  1. Don’t identify a list of possible measurements unless you have a way of gathering and recording the data
  2. Don’t gather the data unless you are going to analyse them to understand what they tell you about current performance, trends and variations
  3. Don’t analyse the data unless you plan to act on the analysis to improve performance

So, having made those points you might find the following Slideshare presentation of interest.  It helpfully uses the Balanced Scorecard framework for suggesting “Need to know” Key Performance Indicators.  Slide 4 has the most important words:

I have picked the ones that should be relevant to most companies. But remember, these are KPIs you need to know, not use! Only use the ones that are relevant to your business strategy and make sure not to miss out the industry specific ones for you (you won’t find those in any generic list).”

You’ll find more of my Balanced Scorecard and Performance Measurement articles here.

25 KPIs Every Manager Needs To Know

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