Measure your business performance...

Results management

In this section

Download a PDF version

Results management

It's been said that no one performance measure can adequately meet all management feedback and analysis needs in a competitive environment.

As such, you need to adopt a measurement approach which provides you with as holistic a view of business performance as possible.

What are you measuring?

To answer that question, let's reflect again upon the broader strategic management process.

This simplified strategic management model can help guide your measurement decisions.

Components of results management

  • Strategy formulation and evaluation: As a result of your strategic planning process, you'll have defined your strategic goals, set strategies and agreed plans to achieve them. As part of any results and performance management model, you must evaluate whether your plans are working and if you're heading towards your goals.

Strategy execution: Strategy in any business is executed through its people and the process deployed, so you must evaluate how productive and effective your people are, as well as how well your processes are performing.

Different measurements

Every business must measure the performance of its people, processes and results. Across these three dimensions, it's possible to get bogged down in trying to describe the different types of measures you can have within each.

In straightforward terms, these include financial (i.e. revenue and costs) and non-financial (e.g. customer and employee satisfaction). Within these categories you will have both outcome measures (ones which tell you what the result is at the end of a given period) and track measures or indicators (ones which tell you what is happening on an ongoing basis).

Deciding when to measure

Measuring must take place all the time, as you need to keep an eye on the indicators to make sure you're on track. Otherwise you won't achieve the desired outcomes. Your measurement intervals can consequently be said to be daily, weekly, monthly, quarterly and annually depending upon what measures you are talking about.