If you are going to manage by numbers, make sure that they're the right ones. Most measures distort managerial behaviour and impair performance. You need to select and implement the key measures that will help you create value. You need smart metrics.
A CEO receives a full bonus in a year when the share price fell by 70%. Why? Because the remuneration committee say he has `met all his operating targets'. Have the right operating targets been set? If you are going to manage by numbers, make sure they are the right ones. Understanding your organization's key performance drivers is crucial to the success of your business. Too often, the wrong operating targets are set, and bad targets can bring bad performance. Smart Business Metrics provides the tools that will enable you to make strategic decisions based on factual analysis. It shows how smart metrics can produce joined-up management to allow all parts of your business to work together to create value for the firm. Smart Business Metrics will: * help you understand your organization's key performance drivers * show you how to set the right targets and measures for your business * enable you to apply quantitative measures to the behaviour of your managers, customers and employees * allow you to make financial and operational decisions * provide you with the tools to enable you to make strategic decisions based on factual analysis.