What are the potential outcomes and benefits from an effective performance measurement system?
On the surface, many businesses may appear to be similar, relying on standard business models or reporting structures. But in truth, every business is unique, operating as a distinct configuration of business models, organizational designs and management practices, all working to support a unique business strategy. A clear understanding of these elements – and how they align to create shareholder value and translate into action at the employee level – is critical to achieving sustainable success. This need is all the more important in today’s global arena, where many multinational companies and international conglomerates reflect an even greater array of different business models and organizational systems across multiple geographies. Without a shared understanding of business objectives, each business or geographical unit might focus on different priorities and have different views on how to create shareholder value. In the face of these challenges, performance measurement systems can
