Performance measures: define the metric before the target

Connect each measure to responsibility

Identify the business outcome a role owns and the conditions it can influence. A result largely controlled elsewhere should not be assigned without clarifying shared responsibilities.

Create a definition card

Record purpose, formula, scope, source, update frequency, owner, exceptions and review method. For delivery attainment, agree whether the unit is an order, quantity or batch and how changed dates, customer holds and partial deliveries are treated.

A shared name does not guarantee a shared definition.

Balance outcomes and process evidence

Outcome measures show whether a goal was achieved; process measures help explain why. Keep the set small enough to support decisions. Avoid collecting indicators that create reporting effort without improving action.

Use reviews to guide management

Discuss evidence, causes, resources and next steps. Separate capability, process and external effects. Compensation or employment-related implementation requires consideration of applicable requirements, organizational rules and appropriate communication.

Pilot definitions and data collection before finalizing targets. The illustration is an AI-generated review setting.