Why does so much strategy fail?
There are lots of reasons around commitment, leadership and resourcing, but one sure fire way of failing is not using performance measurement.So:
- Strategy needs clarify of direction and performance measurement gives you this.The measures you choose let the organisation know where you are going.
- Strategy needs to define what success looks like and again measurement does just this. A good set of measures will show everyone the progress being made towards the organisation’s strategic goals.
- Nobody reads the strategy, so the measures become de facto what the organisation is trying to achieve. Remember this if you want your strategy to be implemented.
- Performance measures hang around when the strategy document has been put back on the bookcase and they influence behaviour.
Therefore, if you have a strategy but no measures are you simply planning to fail?
And if you have a performance measurement system, just go and check it is really aligned with your latest strategy or you may end up somewhere you don’t want to be.