Special Report: Measuring to Manage

Posted March 7, 2007. Reprint 48302.

In recent years, companies have developed much more sophisticated strategic measurement systems, based on such tools as the balanced scorecard, key performance indicators, computerized dashboards and the like. Nonetheless, there seems to be a widespread consensus that they measure too much, or too little, or the wrong things, and that in any event they don’t use their metrics effectively. Why?

The 7 Deadly Sins of Performance Measurement and How to Avoid Them

On the basis of discussions with hundreds of managers, noted management thinker, author and professor Michael Hammer concludes that the operational metrics that companies commonly use make little or no sense. He has identified seven common mistakes the deadly sins that seriously impede the relevance and usefulness of operating measures. He also offers managers some means for redemption.

Mind of the Manager

four managers offer their philosophy of performance measurement and comment on Michael Hammer’s thesis through the prism of their own experience in the field. Includes insights from Carole J. Haney of Boeing, Anders Wester of Tetra Pak, Paul Gaffney of Desktone (formerly of Staples), and Rick Ciccone of Procter & Gamble.