In a Measurement-Managed Organization, there is a set of clear measures linked to the strategy. As the strategy and measure are cascaded throughout the organization, performance management becomes much easier than in traditional organizations - because the strategic measures can be cascaded down to the individual level. Thus, each individual's performance can be measured in terms of how it fits the company's strategy, so that individual performance is directly linked to the organization's strategic performance.
The organization aligns performance management with the overall strategy by cascading the strategy - embedded in measures - down to the individual and team level. .
Because of this, performance measurement takes a very different shape than in a non-measurement-managed organization.
| Strategy-Aligned Performance Management | Traditional Performance Management |
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