5: The Search for Congruent Measures of Performance

A major issue in the discussion of strategic logic is to determine whether congruent measures of performance exist between the partners.

But, Peter, surely this is an obvious one. Both simply want to make money.

That’s it? That’s the only way success is measured in your company? I suspect your planning and budgeting processes are rather more detailed than that.

Well sure. They consider return on equity, return on sales, return on assets, EBITDA (earnings before interest, taxes, depreciation, and amortization)…

What about growth? Market share? Stock market reaction? Managerial satisfaction and morale?

Yeah okay, those all matter to varying extents, depending on who you are talking to in the company.