Why measure?: We create and use measures so that we can manage better. The more clearly and specifically we define our strategic direction and path to get there, the easier it is to determine what measures will accurately track our progress and accomplishment of that direction. Measurement is not easy, nor do most people enjoy it. Measurement, however, is critical. We believe "What gets measured, gets done" and "What gets rewarded, gets done." If you really want to influence employee (and leader) performance, look at what your organization measures and rewards.

Measures that matter: Most organizations are good at defining and gathering data on operational and tactical issues (number of calls received, number of students trained, etc.). Our somewhat irreverent response to that is: "So what? What happened because of that? How did you use that data to make a decision?" PBI advocates creating measures that are more strategic and managerial and "map" to the outcomes you identify in your vision/strategic plan.

Balanced scorecard (BSC) perspectives: We use the BSC to help formulate a strategic direction that is holistic and complete. Similarly, the four perspectives of Customer, Financial (or Budget for the public and not-for-profit sectors), Internal Processes, and Organizational Capacity can form "buckets" for your measurement philosophy and framework. One of the best approaches we've seen was a not-for-profit organization that used its Annual Report to detail its efforts and progress in each BSC perspective.

"What" before "How": A common mistake is to get into the details of how and when you will measure before you clearly define what is most important to measure and how you'll make decisions from the data you gather. The measures that you choose should be a mix of strategic and tactical, leading and lagging indicators, progress and completion, as well as externally vs. internally focused. Avoid the trap of measuring more things than you plan to make decisions/take action on.