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Showing posts with the label Organisational Efficiency

Common Barriers to Measuring Organizational Performance (Structural and Systemic)

One key, structural barrier is the absence of clear, agreed-upon strategic objectives to measure. If senior management cannot reach consensus on goals, it becomes impossible to define meaningful performance metrics [2]. Surveys show 58% of organizations struggle to set clear and measurable goals, which leads to ambiguity in what to track. Additionally, 43% of companies have difficulty aligning performance measures with their strategic goals [1], often because different departments pursue siloed objectives. The misalignment goals means that even if individual departments measure something, the organization lacks a coherent picture of collective performance. Siloed Systems and Data Challenges: Many organizations are structurally not set up to collect and integrate performance data across departments. In a McKinsey survey, 42% of business leaders said their companies lack the necessary technology or tools to effectively gather and analyse performance data [1]. Inadequate IT systems an...

Organizational Performance Management Trends and Patterns

  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...

Article 2: Developing an Ontology of Performance Measures

In this the second article of this series we will look at the importance of having  a structured framework that defines and relates the various performance measures across individual, team and collective levels. An ontology serves this purpose by providing a formal representation of knowledge within a domain, facilitating a shared understanding and enabling more effective communication and analysis (Guarino, Oberle, & Staab, 2009). By developing an ontology of performance measures organizations can standardise metrics, align objectives and improve decision-making processes. This article looks at the creation of an ontology for performance measures, presenting classifications and exploring the relationships between different metrics. By leveraging an ontological approach organizations can better understand how individual contributions impact team performance and, subsequently, collective outcomes. Understanding Ontologies Definition of Ontology An ontology is a formal, explici...