THE HIDDEN DISADVANTAGES OF PERFORMANCE INDICATORS
THE HIDDEN DISADVANTAGES OF PERFORMANCE INDICATORS

Summary/Abstract: Measuring organizational performance is crucial for assessing the effectiveness of an organization's strategies, processes, and overall health. There are various methods and metrics that can be used to measure organizational performance, and the choice of these methods often depends on the organization's goals, industry and specific context. However, even when we know what should be measured we should make sure that we are measuring the right dimension, “the length” or “the width”, in order to obtain the correct and appropriate assessment of the situation. This paper will present some common approaches to establishing key performance indicators (KPIs) as well as, the pitfalls management should be aware of during this process.

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