Article Title: Eccles, R. G. (Jan/Feb 1991). The performance measurement manifesto. Harvard Business Review. 1-8.
The purpose of Eccles (1991) article is to reveal information on what the author calls a ôperformance revolutionö (5). The performance revolution involves a paradigm shift away from conventional measures of performance that are financially oriented to a broader set of measures that include customer service, quality level, market share, and others. The author also discusses why information technology plays a leading role in new systems of performance measurement.
Eccles (1991) argues that with respect to how managers view business performance a ôsea changeö has occurred (1). No longer satisfied with the short-term efficacy of financial measures, managers are now looking to a broader set of measures to assess performance and long-term viability. In todayÆs rapidly changing, fast-paced business environment, managers are learning that financial-only measures are inadequate to gauge long-term and overall performance, often measuring ôyesterdayÆs decisionsö rather than ôtomorrowÆs performanceö (2). Company managers have focused on financial measures, failing to recognize long-term losses due to poor customer service or declining product quality.
TodayÆs managers are relying heavily on information technology systems to identify key performance measures that are more suited to gauging long-term success, like productivity, employee attitudes, market share, quality, and customer service. An external approach is also used to gauge the performance of competitors and identify best practices. Designing an information technology process to ensure that such key measures are considered is the focus of many current managers. What is effective for a specific company is dependent upon company history, culture, management style, and short- and long-term goals.