Guidelines for using performance metrics to better improve implementation, gauge strategic progress.

What is it about?

Most strategies fail in the implementation phase, regardless of their brilliance. Performance metrics are critical tools for monitoring and guiding implementation, but they are often underdeveloped or misaligned. Allio proposes seven guidelines for creating and deploying metrics that encourage strategic behavior, provide timely feedback, simplify the challenges of managing in a turbulent world, enhance stakeholder alignment, and galvanize the team.

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Why is it important?

Misaligned metrics often impede implementation, eliciting resistance and counterproductive behavior from key managers. A better approach involves creating and deploying a smaller set of multidimensional metrics, closely aligned with the firm’s strategies. Successful firms move beyond simple budgetary indicators: they formulate a core set of powerful metrics that direct management focus outside the firm (into the marketplace); translate qualitative aspirations into quantitative targets, using a common language; align the firm’s metrics with other managerial systems (like rewards) to motivate and galvanize the management team; create a culture of practical review and a common language for strategic analysis.

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