Senior managers now appear to appreciate that if they are to achieve their strategic plans, they should adopt a more balanced approach to measuring performance by considering financial and non-financial performance measures. Considerable attention is presently being given by a number of so-called leading edge companies to developing a more comprehensive and integrated set of criteria for judging and guiding corporate and segmental performance, largely prompted by Kaplan & Norton’s concept of the Balanced Scorecard.
While in-house development of performance management systems has worked for some companies often it is far better to seek external advise as a means of introducing best practice adopted in other companies and to benefit from the wide experience of external advisors. In the UK a number of consultancy firms offer such a service, however, some consultancy firms wish to sell an off the shelf solution which may lead to disastrous consequences.
An alternative to using consultancy firms is to seek advise from genuinely independent institutions, such as The Centre for Director Education, based at Leeds Business School which has extensive experience in guiding managers through complex performance management issues and offers robust solutions to business under-performance.