Measuring Performance

Business Metrics


Contemporary Measurement System

Two Elements


Performance Management



By Michael Hammer  


①  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.

Learning SWOT Questions

②  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.

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"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."

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 Vadim


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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