This article presents an alternative view to the accepted wisdom that detailed performance measurement of each employee required to achieve superior performance. As we show, a manager of a leading German energy distribution company did not use metrics to manage the performance of their staff, but operational excellence is achieved through mechanisms ultimately on trust and responsibility. Based on observations in this company, we are committed … Read more »

This article presents an alternative view to the accepted wisdom that detailed performance measurement of each employee required to achieve superior performance. As we show, a manager of a leading German energy distribution company did not use metrics to manage the performance of their staff, but operational excellence is achieved through mechanisms ultimately on trust and responsibility. Based on observations in this company, we lay a number of proposed features of companies that may not require formalized individual performance measurement systems to achieve high performance standards.
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K. W. Platts
M. Sobotka
Source: Business Horizons
9 sides.
Publication Date: Jul 15, 2010. Prod #: BH392-PDF-ENG
If the Uncountable Count: An alternative to monitoring employee performance HBR case solution