Lack of Leadership Commitment: Effective organisational performance measurement must be championed from the top. One common reason organizations don’t measure collective performance is that senior management is not truly committed or involved. They might announce high-level goals but don’t follow through on creating a measurement system, sending the signal that it’s not a priority. Research consistently highlights lack of executive support as a major barrier to implementing performance management systems. Without leadership driving the effort, initiatives stall due to middle-management resistance or inaction. Furthermore, if leadership doesn’t routinely review performance data or hold teams accountable for it, any measurement that does exist remains nominal. For example, an academic review by Cunha et al. (2023) found that securing senior management involvement and support is essential to overcome other obstacles in performance measurement. When that support is absent, even we...
Measuring organizational performance, the overall effectiveness of an organization in achieving its goals is widely recognized as crucial for success. In fact, 86% of executives believe that tracking organizational effectiveness is key to long-term success, yet only 40% of organizations try to regularly track such metrics [1]. The gap suggests that many organizations acknowledge the importance of performance measurement but still do not implement it in practice. This analysis explores the broad reasons why organizations fail to measure collective performance, identifying recurring barriers across industries. The article draws on expert opinions, academic research and case examples and highlights structural, cultural and strategic factors that commonly impede the adoption of effective performance measurement systems. Importance Organizations that measure and manage performance tend to achieve better outcomes. A study by the Metrus Group compared “measurement-managed” organ...