The true role of performance measurement is a means of management learning, rather than simply to provide only a means of management control. It is widely accepted indicators are important when managers to track progress and determine whether their organization move in the desired direction. In essence, this is the basic philosophy that underpins ideas of management control. However, the power of measurement extends far beyond the pursuit of progress in three other areas. First, the … Read more »

The true role of performance measurement is a means of management learning, rather than simply to provide only a means of management control. It is widely accepted indicators are important when managers to track progress and determine whether their organization move in the desired direction. In essence, this is the basic philosophy that underpins ideas of management control. However, the power of measurement extends far beyond the pursuit of progress in three other areas. First, the act of deciding what to measure helps illustrate the organization’s strategy. Second, clear measures, underpinned by an explicit theory of how the business works, assist in the process of communication strategy and achieving organizational alignment. Third data may be used to generate power insight. This in turn can be used to the tacit or explicit assumptions about how the company works are held to challenge. Makes explicit the hidden potential of performance measurement by how measurement systems can contribute to the organization of systems for management learning and management control. Also shows how more value from the data that exist in institutions, are extracted as traditionally recognized.
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from
Andy Neely,
Mohammed Al Najjar
Source: California Management Review
15 pages.
Release date: 01 May, 2006. Prod #: CMR341-PDF-ENG
Non-Management Learning Management Control: The true role of performance measurement HBR case solution