LO's and Performance Measurement LO10731

FVoehl@aol.com
Sun, 27 Oct 1996 20:26:56 -0500

[Linked arbitrarily to LO10709 by your host.]

In answer to the request for information concerning *measurement and the LO*,
I would like to offer the following thoughts:

The need is for a measurement tool to reconcile the conflict between
creativity and control. One of the answers that I have had success with
in the past couple of years is the concept of Diagnostic Balanced
Scorecard Systems (DBSS), which involves the following four factors: (1)
measuring progress against plans to guarantee the predictable achievement
of goals (2) measuring belief systems (3) evaluating boundary systems ans
(4) interactive control systems.

Each of these four control levers has a distinct purpose. Diagnostic
Balanced Scorecard Systems allow managers and employees to ensure that
important goals are being achieved. Belief systems empower individuals
and encourage them to search for new opportunities. (They communicate
core values and inspire all employees to commit to the organization's
purpose0. Boundary systems establish the rules of the enterprise and
identify the pitfalls that people should avoid to be successful.
Interactive control systems enable top-level managers to focus on the
strategic uncertanities and learn about threats ans opportunities as
competitive conditions change. The DBSS acts like the dials on the
control panel of an airplane cockpit, enabling the pilots to scan for
signs of abnormal failure of functions and keep the critical performance
variables within preset limits. The combination of belief systems and
boundary systems( telling people what not to do) allows for innovation
within clearly defined limits. They operate like the organizations brakes
and, like racing cars, the fastest companies need the best brakes.

The fourth aspect of DBSS, interactive control systems, focus on the
constantly changing information that senior managers consider potentially
strategic. Collectively, these four levers of control set in motion
powerful forces that reinforce one another.

Sorry about the lenght of this message but I could say a whole lot more
about this subject. Let me know if any of this makes sense.

Frank Voehl (FVoehl@aol.com)

-- 

FVoehl@aol.com

Learning-org -- An Internet Dialog on Learning Organizations For info: <rkarash@karash.com> -or- <http://world.std.com/~lo/>