More comments on maintaining clear distinctions in the measurement / success descriptions
We use two levels of measurement to support decision making and the management of performance. It is critical to maintain a clear distinction between the varying levels in order to ensure that the correct assumptions can be made about the results. Currently, we are using a strategic/tactical measures framework:
1) Strategic: Balanced scorecard measures
a. Measures the progression of the corporation toward the desired state as described in the objective statement (as further clarified by board objectives)
2) Tactical: Initiative reporting
a. Measures the quality of the implementation of corporate initiatives
It is critical to maintain a very clear distinction between the two layers, or a comparison between the results of the two levels will cloud the conclusions intended from this measurement structure. By separating the measurement into the balanced scorecard (impact of the strategies) and the corporate initiatives (implementation of the strategies) the organization is able to determine whether the strategic and the operational were successful separately. When these are mixed, this clarity is lost.
This framework should show you the following:
IF
The implementation of the strategies has been done in a way that achieves the desired results
THEN this determination can be made:
We are progressing toward the desired state as measured by the scorecard and described in the objective statements
RESULTING IN clarity around the following
The organization has chosen the correct strategies
Guidelines for measures
Balanced score card measures:
- Both qualitative/perceptual and quantitative measures are appropriate
- Indicate organizational performance and progression relative to the long-term objectives
- The organization can control the outcomes and be held accountable for the results
Initiative Reporting measurement:
- Quantitative measures are appropriate
- Focused on the quality of the initiative implementation
- Defines the success and outcome of the project as initially intended
Guidelines for success statements
Balanced scorecard measures:
- Success is the advancement that results from corporate initiatives but does not refer to tactics originating in the initiative action plans
- Measures corporate level success: corporate performance or of the responsibility of the corporate entity
- Measurable and non-subjective
Initiative Reporting measurement:
- Defines the specific outcome of the project in order to create the desired impact on corporate measures and progression
- Specific in terms of deliverables and outcomes
- Measurable and non-subjective