Performance Management: Impacts and Trends

This national survey of a cross-section of executives concluded that measurement-managed companies— especially those that measure employee performance—outperform those that downplay measurement. The research studied 122 organizations making between $27 million and $50 billion in sales.A higher percentage of measurement-managed companies were identified as industry leaders, as financially in the top third of their industry, and as successfully managing their change efforts. This last area implies that measurement-managed companies tend to anticipate the future and are likely to remain in a leadership position in a rapidly changing environment.