Connecting measures of success and actions with strategy
These connections can help leaders gauge organizational progress toward its goals.
It can be a struggle for boards and other stakeholders to consistently connect their organization’s actions and measures of success to its strategy. Sometimes the strategy that was decided on during planning may become only tenuously connected to the measures of success and actions being taken as the year progresses. This can leave people feeling unsure about what is being done to achieve the strategy and whether the strategy is actually successful, even if everything is on track.
Ideally, an organization develops a high-level strategy, which then defines the measures and actions to be taken to support it. The right measures and actions are usually crystal clear coming out of planning but in practice, metrics are often reviewed on their own and their relationship to strategy can be lost. The same thing disconnect can happen with major projects or strategic actions undertaken to support the strategy.
Why Are You Measuring What You’re Measuring?
Most organizations have scorecards or key metrics tied to goals that are reviewed regularly to track success. A helpful exercise is to take a deeper dive to ensure everyone understands the purpose of each measure. Consider doing this each year to refresh memories and introduce any new measures that reflect fresh strategies. Ask such questions as:
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