MANAGEMENT SYSTEMS AND MEASURES DOS AND DON’TS

• Don’t stop at capabilities; ask yourself which management systems are needed to

foster those capabilities.

• Do continue strategic discussions throughout the year, building an internal rhythm that keeps focus on the choices that matter.

• Do think about clarity and simplicity when communicating key strategic choices to

the organization. To get at the core, don’t overcomplicate things.

• Do build systems and measures that support both enterprise-wide capabilities and business-specific capabilities.

• Do define measures that will tell you, over the short and long run, how you are performing relative to your strategic choices.

A common mistake is simply noting down KPIs that are representative of the daily and weekly activities of the person listed for a particular function. It’s critical to zero-base your KPI decisions. Do this by covering up the names listed in the “Person Accountable” column

(metaphorically or physically) and then decide on KPIs for each function that align with the business model of the company. en consider if the person in the job function has the skills and aptitude to deliver on those KPIs. A mismatch might indicate a potential problem.

(For more practical insights about building Job Scorecards, read Bluewire Media’s excellent blog on the topic.)

For an excellent overview, read Geoff Smart and Randy Street’s book Who: The A Method for Hiring; to learn the details of the process, read Bradford D. Smart’s book Topgrading: The Proven Hiring and Promoting Method That Turbocharges Company Performance.

Robert H. Bloom and Dave Conti’s book The Inside Advantage: The Strategy at Unlocks the Hidden Growth in Your Business, and Rick Kash and David Calhoun’s book How Companies Win: Profiting From Demand-Driven Business Models No Matter What Business You’re In.