How do you determine what is important to measure in an organization?
There are several determinants of what to measure in an organization. One of the determinants is the goals and objectives set for the organization. The aim of the organization from its inception lies in the goals and objectives. In order to, therefore, determine if the aim is being fulfilled, measurement of the performance against the set goals and objectives is necessary (Hannabarger, Buchman and Economy, 209).
Another determinant is the strength and weaknesses of the organization. These are important in determining measurement because they reflect the true nature and state (financial or otherwise) and measurement of these will point the organization to its next direction and steps. Additionally, the threats being faced by the organization are also determinants of measurement if the organization is succeeding in the future.
Finally, the specified mission and vision of the organization also act as effective determinants of performance measurement. This is because they involve the future of the organization and its success or failure. The mission and vision are what give the organization a brand name and distinguishes it from its competitors and it is, therefore, necessary to measure whether that is still the truth (Hannabarger, Buchman and Economy, 218).
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