Traditionally we set a large number of performance goals top-down
By starting from vision and strategy, and define top level KPIs like profit, shareholder value, ROI, Return on capital employed, etc.
Then, we deploy these as KPIs top-down to business units, their departments and employees.
- Per unit we select 20-25 performance measures, establish target goals for each, and communicate these as scorecards to managers and employees.
- This approach works well in stable situations. However, faced with acceleration its hierarchical structure is too rigid, too difficult and too slow to adapt to rapidly changing circumstances.
- To cope with acceleration we need a much more simple and focused approach
For agile business management the delta-T methodology requires focus on one single goal: Revenue
- Instead of setting many performance measures, we focus on one single essential goal "sufficient revenue for today and tomorrow"
- Focusing on just this one goal, we will manage our business with much higher agility than with our traditional practice.
