Measuring the performance of a business goes hand in glove with its business strategy. Or it should. But surprisingly, as I’ve witnessed firsthand over an extended period, organizations in all sectors struggle to match their strategy design with their performance measurement.
Avoid These Pitfalls When Measuring Your Strategy’s Performance
How to establish the right KPIs.
September 04, 2023
Summary.
This article explores three common traps that managers fall into when measuring their strategy’s performance and explains how to avoid them. The first trap is when the strategic framework and measurement system don’t align. To fix it, you must organize both around key stakeholders. The second trap is when companies measure what they do rather than what they achieve. To fix this, focus on stakeholder outcomes. The third trap is a lack of focus. To fix it, cascade rather than amalgamate your metrics.
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New!
HBR Learning
Strategy Planning and Execution Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Strategy Planning and Execution. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
How to develop a winning strategy—and put it to work.