Measure and Manage Performance

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The Stairway to Performance: Focusing on Outcomes.”

Real trust can only grow when people know how the organization’s performance will be judged. In my experience, people align themselves around whatever is being measured like particles of iron around a magnet. That’s why the scorecard is such a critical part of sharpening the focus.

A scorecard needs to capture three different dimensions:

  • What will be measured (the metric)
  • What you’ll aim for (the target)
  • The current performance (the baseline)

Measure and Manage Performance

When measuring success, distinguish between inputs, activities, outputs, and outcomes. Outcomes measure the actual value you’re creating, like satisfied customers or financial profitability, and they are the key to high performance. This is shown here in the “stairway to performance.”