Cutting the Gordian Knot of Misguided Performance Measurement

Well over 50 per cent of a manufacturing company′s resources are found in Operations. Long‐ and short‐term success demands deploying these resources – money, time, material and people – on the right problems and their solution. Unfortunately, traditional accounting‐driven performance measurements are not doing enough to facilitate this. Nowadays, the numbers often hinder rather than help execute business strategy effectively. Frontline managers perceive, rightly, that the cognitive overload accumulating in their “in” boxes has little relevance to business success. Differences of opinion occur between various management levels and/or functional areas over what is really important, and whether or not the system measures the strategy. Resolving these differences can get the whole company executing the business strategy as a team.