Management Learning Not Management Control: The True Role of Performance Measurement Harvard Case Solution & Analysis

The true role of performance measurement is to provide the management tools of learning, not just a means of management control. It is widely believed indicators are important for managers to track progress and determine whether their organization is moving in the right direction. Essentially, it is the basic philosophy underlying the idea of ‚Äč‚Äčmanagement control. However, the measurement of power goes far beyond the simple tracking of progress in three other areas. First, the act of deciding what to measure helps to clarify the organization's strategy. Second, clear measures, backed by a clear theory of how business works, to assist in the process of communication strategies and achieving organizational alignment. Third, the data can be used to create performance ideas. This, in turn, can be used to challenge the tacit or explicit assumptions that are held about how the business works. Makes explicit the hidden potential of performance measurement by providing a measuring system can contribute to the organization of systems for managing training, and management control. It also shows how more value can be extracted from the data that exist in the organization than the traditionally recognized. "Hide
by Andy Neely, Mohammed al-Najjar Source: California Management Review 15 pages. Publication Date: 01 May 2006. Prod. #: CMR341-PDF-ENG

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Management Learning Not Management Control: The True Role of Performance Measurement

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