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FOCUS ON THE GOAL
One of the things most
disliked by people is waste. Different cultures perceive
waste in different ways. Poor performance measures are
one of the main drivers causing waste and too often
denied. To maximize the profit mix in a global market
context, overall business performance, which includes
waste, has to be properly measured.
The solution to this problem
lies in the way performance is measured. Why? 'Because
people behave according to the measurement systems they
are confronted with*'. Think about it. Does paying
higher commissions for more sales create more profits?
No, it creates more sales. However, paying a higher
reward for more Throughput speed creates the right mix
of sales resulting in more net profits.
* Adapted from a Dr Eli
Goldratt quote. |