Performance Measurement Analogies
08/07/2014
![Header-Cranfield-University Header-Cranfield-University](https://blogs.cranfield.ac.uk/wp-content/uploads/2021/07/Header-Cranfield-University-1.jpg)
You have all probably heard of the first two analogies for scorecards and measurement systems, but i created the third after talking to an executive of a large multi-national company.
- A Balanced Scorecard is like having the instruments to fly a plane. Kaplan & Norton used to compare the 4 quadrants in a balanced Scorecard to the “T” on the flight deck. By keeping an eye on a few key indicators you can pilot your organisation to your destination.
- However, improving performance isn’t done by measurement. You don’t increase the speed of your car by forcing your finger through the glass of the speedometer and pushing up the indicator. You improve performance by focusing on the activities that deliver the performance and then capture the improvement using the measures or KPIs. On a personal note I remember my young brother many years ago suggesting we could stop my father from speeding by putting a peg in the speedometer at 70 miles an hour!
More recently companies seem to have lost the plot with measurement, so from my discussion this was like
- An aeroplane cockpit being continually filled with new indicators until we reach the point that the aeroplane can’t take off because of the weight of the instrumentation!
I like this one as it reminds us that measurement isn’t for free, it puts a load on a company. The added cost has to be worth the benefit derived and in some big organisations I believe we have passed the point where the additional measurement is beneficial.
Mike Bourne
Categories & Tags:
Leave a comment on this post:
You might also like…
Keren Tuv: My Cranfield experience studying Renewable Energy
Hello, my name is Keren, I am from London, UK, and I am studying Renewable Energy MSc. My journey to discovering Cranfield University began when I first decided to return to academia to pursue ...
3D Metal Manufacturing in space: A look into the future
David Rico Sierra, Research Fellow in Additive Manufacturing, was recently involved in an exciting project to manufacture parts using 3D printers in space. Here he reflects on his time working with Airbus in Toulouse… ...
A Legacy of Courage: From India to Britain, Three Generations Find Their Home
My story begins with my grandfather, who plucked up the courage to travel aboard at the age of 22 and start a new life in the UK. I don’t think he would have thought that ...
Cranfield to JLR: mastering mechatronics for a dream career
My name is Jerin Tom, and in 2023 I graduated from Cranfield with an MSc in Automotive Mechatronics. Originally from India, I've always been fascinated by the world of automobiles. Why Cranfield and the ...
Bringing the vision of advanced air mobility closer to reality
Experts at Cranfield University led by Professor Antonios Tsourdos, Head of the Autonomous and Cyber-Physical Systems Centre, are part of the Air Mobility Ecosystem Consortium (AMEC), which aims to demonstrate the commercial and operational ...
Using grey literature in your research: A short guide
As you research and write your thesis, you might come across, or be looking for, ‘grey literature’. This is quite simply material that is either unpublished, or published but not in a commercial form. Types ...