When not to measure - why business performance management can fail
Today we've been reading up on the views of Dr Chris Ford FCA, fellow of the ICAEW and academic advisory member to the Finance and Management Faculty Committee.
Some great insight into why sometimes the measurement systems we use don't always result in the behaviours our businesses need, but also what you might do about it.
In summary the key headings were:
Maintain intrinsic motivations
Harness intrinsic motivation to achieve organisational goals.
Control system types – from transactional to relational
Understand the risks of building a highly transactional performance management system and counterbalance with a more relational approach.
Control for both stability and innovation
Explore ways to promote and manage innovation with a controlled approach.
Whole-system analysis and the accountability audit
Are your formal and informal accountabilities working against each other? Investigate the relationships in a systematic way.
Investing in a major new project or joint venture, ensure you take a life cycle perspective on measurement and control system design.