ffective management is based on a foundation of effective measurement, and almost everything else is based on that. Organizations are conglomerations of many systems. Measurement is actually the most fundamental system of all. The measurement system-for good or ill-triggers virtually everything that happens in an organization, both strategic and tactical. This is because all the other organizational systems are ultimately based on what the measurement system is telling the other systems to do. No organization can be any better than its measurement system. If the measurement system works well, management will tend to manage the right things-and the desired results will occur.
THE IMPORTANCE OF MEASUREMENT
So why is measurement so important? Here are some of the most compelling reasons:
It cuts through the B.S. and gets right to the point. People can (and often do) advance their points of view with incredible vagueness until they are challenged ''to measure it.'' Suddenly, clarity emerges.
It makes performance visible. Even if you can't see performance directly, you can see it indirectly using measurement. This is the concept of ''operational definitions'' that is such a critical part of effective measuring.