How do you measure how well your strategic plan is performing?

Strategic performance measures accomplish three goals:

  1. monitor the implementation and effectiveness of an organization's strategies;
  2. determine the gap between actual and targeted performance; and
  3. determine organization effectiveness and operational efficiency.

Good performance measures:

  • provide a way to see if your strategy is working
  • focus employees' attention on what matters most to success
  • allow measurement of accomplishments, not just of the work that is performed
  • provide a common language for communication
  • are explicitly defined in terms of owner, unit of measure, collection frequency, data quality, expected value (targets), and thresholds
  • are valid, to ensure measurement of the right things
  • are verifiable, to ensure data collection accuracy