Transforming Performance Measurement: Rethinking the Way We Measure and Drive Organizational Success

Transforming Performance Measurement: Rethinking the Way We Measure and Drive Organizational Success

5.0 1
by Dean R. Spitzer

ISBN-10: 0814408915

ISBN-13: 9780814408919

Pub. Date: 02/09/2007

Publisher: AMACOM Books

It’s no secret that you can’t improve your organization’s performance without measuring it. In fact, every function, unit, process, and the organization as a whole, is built and run according to the parameters and expectations of its measurement system.

So you’d better make sure you’re doing it right

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It’s no secret that you can’t improve your organization’s performance without measuring it. In fact, every function, unit, process, and the organization as a whole, is built and run according to the parameters and expectations of its measurement system.

So you’d better make sure you’re doing it right. All too often, performance measurement creates dysfunction, whether among individuals, teams, or across entire divisions and companies. Most traditional measurement systems actually encourage unhealthy competition for personal gain, creating internal conflict and breeding distrust of performance measurement.

Transforming Performance Measurement presents a breakthrough approach that will not only significantly reduce those dysfunctions, but also promote alignment with business strategy, maximize cross-enterprise integration, and help everyone to work collaboratively to drive value throughout your organization.

Performance improvement thought leader Dean Spitzer explains why performance measurement should be less about calculations and analysis and more about the crucial social factors that determine how well the measurements get used. His ""socialization of measurement"" process focuses on learning and improvement from measurement, and on the importance of asking such questions as: How well do our measures reflect our business model? How successfully are they driving our strategy? What should we be measuring and not measuring? Are the right people having the right measurement discussions?

Performance measurement is a dynamic process that calls for an awareness of the balance necessary between seemingly disparate ideas: the technical and the social aspects of performance measurement. For example, you need technology to manage the flood of data, but you must make sure that it supports the people who will be making decisions and taking action crucial to your organization’s success. This book shows you how to design that technical-social balance into your measurement system.

While it is urgent to start taking action now, transforming your organization’s performance measurement system will take time. Transforming Performance Measurement gives you assessment tools to gauge where you are now and a roadmap for moving, with little or no disruption, to a more "transformational" and mature measurement system.

The book also provides 34 TMAPs, Transformational Measurement Action Plans, which suggest both well-accepted and "emergent" measures (in areas such as marketing, human resources, customer service, knowledge management, productivity, information technology, research and development, costing, and more) that you can use right away.

In the end, you get what you measure. If you measure the wrong things, you will take your company farther and farther away from its mission and strategic goals. Transforming Performance Measurement tells you not only what to measure, but how to do it -- and in what context -- to make a truly transformational difference in your enterprise.

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Table of Contents



The Elusive Search for the Secret of Success

Changing the Paradigm

A Surprising Truth About Performance Measurement

The Purpose of This Book

The Transformational Measurement Questionnaire


Chapter 1: Why Measurement Is So Powerful

The Pervasiveness of Measurement

The Challenge of Organizational Measurement

The Power of Measurement

Performance Measurement Promotes Effective Management

The Functions of Performance Measurement

Chapter 2: When Measurement Goes Bad

The Problem of Measurement Dysfunction

A Major Cause of Measurement Dysfunction

How Rewards Increase the Potential for Measurement Dysfunction

Fear Also Induces Measurement Dysfunction

Measuring the Wrong Things

Measuring ""Looking Good"" Rather Than ""Being Good""



Measuring Too Much

Dysfunctional Measurement and Employees

Chapter 3: Why Measurement Goes Bad

Motive and Opportunity

How People Experience Measurement

Employees' Attitudes Toward Measurement at Work

The Context of Measurement

Confusing Measurement and Evaluation



The ""Motivational"" Use of Measurement


Negative Accountability

Resistance to Measurement

Opportunity and Motive Revisited

The Challenge Ahead

Chapter 4: Beginning the Transformation

The Transformational Vision

How to Realize the Vision: The Four Keys

A Roadmap to Success

Chapter 5: Creating A Positive Context of Measurement

The Context of Measurement

The Formal Aspects of the Performance Measurement System

The Human Factor

The Context of Measurement Continuum

A Sure-Fire Indicator of Positive Context of Measurement Change

Snapshots from the New Performance Measurement Paradigm

The Ongoing Transforming Power of Content

Chapter 6: The Focus of Measurement

The Importance of Focus

Selecting the Right Measures

Effectiveness First

How Value Is Created and Destroyed

Business Models and Strategy

Measuring What Matters Most

Measuring Intangible Assets

High-Leverage Measuring

Emergent Measures

New Customer Measures

Don't Expect Perfection

The Next Step

Chapter 7: The Integration of Measurement

The Importance of Measurement Integration

The Dis-Integrated Organization

Dis-Integrated Measurement

Dis-Integrated Data

Strategic Measurement

The Balanced Scorecard

The Value of Measurement Frameworks

Measurement Frameworks and Trade-Offs

Developing Measurement Frameworks

The Need for a CMO

The Next Step

Chapter 8: The Interactivity of Measurement

The Importance of Interactivity

Performance Measurement Should Be Both Interactive and Iterative

Data, Information, Knowledge, and Wisdom

The Data-to-Wisdom Conversion Process

Examples of Interactivity to Generate Wisdom

The Performance Measurement Cycle

Dialogue: The Key to Measurement Interactivity

Assessing an Organization's Measurement Capabilities

The Challenge of Interactivity Today

The Tendency to View Technology as the Panacea

Making Progress


Chapter 9: Measurement Leadership

The Importance of Measurement Leadership

Why Measurement Leadership Doesn't Happen

The Tension Between Intuition and Measurement

The Myth of the Intuitive Leader

What Happens in the Absence of Measurement Leadership?

Routine vs. Transformational Measurement

The Challenges of Changing Measurement

Leading Transformational Performance Measurement

Establishing an Environment Conducive to Change

Making the Transformation Happen

Measurement Leaders

Needed: The Role of Chief Measurement Officer (CMO)

Chapter 10: Learning About and from Measurement

Transformational Learning

The Process of Learning

The Learning Loop

Transformational Measurement and Double-Loop Learning

Organizational Learning

Why Smart People Do Dumb Things

How Performance Measurement Can Help

Learning New Ways of Thinking About Performance Measurement

The Keys to Transformational Learning

How Well Does Your Organization Learn About and from Measurement?

Chapter 11: The Uses and Abuses of Measurement Technology

In Search of a Quick Fix and a Technology Breakthrough

Technology Infatuation

The Human Factor

The Proper Role of Technology in Performance Measurement

Business and Social Architecture

Failure to Address the Social Issues

Critical Issues in Adopting Measurement Technology

Scorecards and Dashboards

Adopting and Implementing Measurement Technology

Steps for Successful Technology Investment

Chapter 12: Performance Measurement Maturity

The Concept of Maturity

The Transformation Journey

Assessing Transformational Performance Measurement Maturity

Levels of Performance Measurement Maturity

The Transformational Measurement Maturity Assessment

Chapter 13: Transformational Measurement: Now Is the Time to Take Action

Defining Transformational Measurement

From Exploration to Transformation

Traditional vs. Transformational Thinking

Taking the Lead in Transformational Measurement

The Transformational Lens

An Experimental Attitude Is Essential

The Challenge of Measuring Intangibles

Transformational Measurement of Intangibles

Chapter 14: Transformational Measurement Action Plans (TMAPs)

1.Customer Experience

2.Customer Engagement

3.Customer Delight

4.Customer Loyalty

5.Customer Relationship

6.Voice of the Customer

7.Customer Profitability

8.Customer Lifetime Value

9.Service Quality

10.Brand Equity

11.Intellectual Capital

12.Strategic Readiness of Intangibles

13.Innovation Climate


15.Organizational Trust

16.Partner Relationships



19.Organizational Agility



22.Total Cost of Ownership

23.Activity-Based Costing

24.Economic Value Added

25.Organizational Intangible Value

26.Project Scheduling

27.Employee Engagement

28.Emotional Intelligence

29.Employee Safety

30.Employee Presenteeism

31.Learning Effectiveness

32.Information Orientation

33.Information Proficiency

34.Knowledge Flow

Epilogue: How to Begin Transformational Measurement in Your Organization

The Need for Measurement Leadership




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Transforming Performance Measurement: Rethinking the Way We Measure and Drive Organizational Success 5 out of 5 based on 0 ratings. 1 reviews.
Guest More than 1 year ago
The code for a new level of performance measurements measuring organizational success has been broken and its secrets are revealed in this book! Dean Spitzer brilliantly helps readers transform performance measurements by combining technical aspects with the often overlooked social aspects of performance. This book is a must read for all who truly want to create and maintain a transformational performance measurements ¿cultural shift¿ within their organization.