How it works

Well-designed organizations not only place the right people in the right roles but also measure performance to optimize business outcomes and provide the appropriate incentives to empower the organization to contribute to business priorities. To that end, developing key quantitative measures that provide insights into the effectiveness, efficiency, and impact of the organization's structure and operating model is essential for managing, monitoring, and improving the design. That, in turn, is critical for assessing its value in meeting organizational, operational, financial, and talent objectives.

looks_oneReview organizational goals and business strategy

While performance metrics can play an important role in tracking how the organization's activities contribute to business priorities, the organization must first agree on what to measure and why. The definition of “high performance” can vary by function, operation, or location, depending on the organization’s culture, goals, business strategy, and the market dynamics in which it operates. As a result, a tailored approach to identifying the organization’s priorities and aspirations is an essential step towards identifying performance indicators that make sense for the organization.