select... Topics Organization People Activities Issues

Vol 25 - No 07 - September 1999 Letter: Performance Measurement Systems Only those areas which are important to the business need to be measured; that is the factors critical for the success of the business. It is usually the customer or the market that defines these. How successful the company is in those areas is judged by how well it performs in comparison to the competition. Consider quality. Whilst this may be of prime importance to the customer there may be no value in making an improvement if the product's reliability is already ahead of the competition. To make matters worse, making a step change improvement in quality could in consequence defer a price reduction in the product and it is in on that factor the business might be weak. Developing measures only serves to draw attention. Therefore, it makes sense to introduce a programme of measures for those factors the business is wanting to improve upon. To do otherwise is folly and might produce an unrewarding end result. Regards Colin Richmond Lucas Varity Page: 6 Words: approx. 150 Related Topics: Metrics Quality management
	To read the articles you'll need Acrobat Reader. To download Acrobat Reader click the following button: To Save and Print the articles click the appropriate on-screen buttons or select Save or Print from the File menu at the top of the Acrobat window.