How Do You Develop A Strategic Performance Measurement System?
One of the most complex and enormous challenges the human resources function faces is the alignment of the company’s performance measurement system with its business strategic direction. While this subject has broad implications that touch the day-to-day operations of a company as well as its planning, budgeting and goal-setting processes, at the end of the day if workers have not produced enough goods or services, companies will take a hit to the bottom-line and fall sadly short of goal achievement. Developing and implementing a strategic performance measurement system will help to keep workers committed to a company’s business system and goals and aware of how their jobs fit into strategic activities. Responsibility for developing a strategic performance measurement system lies with the human resources function. This article offers several tips to jumpstart the process. Link performance measurement to business planning. Tie resulting performance metrics to overall business results. D
