How to take multiple measures to get a complete picture of organizational performance

Abstract

Abstract By drawing together a set of measurements of the organization from the perspectives of its various stakeholders—customers, employees, stockholders, owners, suppliers, and communities—an organization can avoid the shortsightedness that often results from focusing on a single measure of success. With a family of measures, the impact of changes to the organization can be studied at once from the point of view of all stakeholders, thus ensuring a holistic understanding of organizational health and performance. This article explains the concept of a family of measures; provides examples from manufacturing and service organizations; and addresses a number of considerations about developing, displaying, and using the set of measures to improve management planning and decision making.

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