You Can’t Manage What You Can’t Measure
Management, by definition, requires intimate knowledge of what is being managed. And business knowledge depends on measurement. Strategy International’s execution plans encourage and demand constant measurement of progress toward each initiative and objective. This measurement occurs via both internal and external feedback. Each consists of hard-and-fast performance measures (financial growth, percent customer retention) in key strategic areas, as well as qualitative responses to the changes taking place. The mechanism of measurement encourages adaptability: external feedback notifies managers of relevant (and sometimes urgent) changes in the environment, while internal feedback efficiently integrates employee innovation and input.
Next time we’ll wrap up with Business Strategy Navigation as we take a look at “The Problem with Strategy.”