Effective Performance Measurement System

2 Elements

by Michael Hammer,
the author of Agenda


Vakue of Systems Thinking Interdependence VadiK Systems Thinking Business Design IT Architecture Systemic Innovation Cross-functional Management Enterprise-wide Business Process Management (EBPM) Total Quality Management (TQM) Customer Experience Management e-Coach Systems Thinking value for business VadiK holistic thinking



Formal, structured and quantified model of enterprise

It recognizes that modern business are complex systems, connects a company overarching objectives with its controllable dimensions and enables managers to mobilize a company's resources and capabilities to ensure that it achieves its paramount goals. It shows managers both what they ought to measure and what they ought to do with the measures.


Process-managed Enterprise

9 Steps to building a Process-managed Enterprise

Process Thinking

Business Process Thinking Checklist: 14 questions





Process to improve enterprise performance

It contains a deliberate process for using measurement data to improve enterprise performance, a structured and focused program that uses measurement information to identify the causes of inadequate performance and then does something about them.


Enterprise-wide Business Process Management (EBPM)

8 Principles of EBPM





"A contemporary approach to measurement recognizes that modern business are complex systems, for which intuition no longer suffices. Today any action that a manager takes can have myriad and unpredictable consequences throughout the organization. Therefore measurement must be based on a careful through-through analysis of the business, one that links the objectives of the business to the things over which managers and front-line personnel have control. Only then can the recognition of a problematic measure lead to the right actions that will correct it and to improved performance of the business a whole."


Business Process


Measuring Performance

Business Metrics

Effective KPI

Performance Management





Vadim Kotelnikov

Mediocre metrics tell you what's going on.
Better metrics tell you what's going on an why.
Best metrics tell you what's going on and why, and help you discover ways to make things radically better.

Vadim Kotelnikov, founder of 1000ventures - personal logo VadiK

Inventor Business e-Coach

Author Innoball

Founder Innompic Games icon


Naryana Murthy advice

A great company continuously measures and improves the following attributes: meritocracy, fairness, justice, openness, speed, imagination and excellence in execution.

Naryana Murhty