Measuring success in a changing environment

There is a major change occurring in how business performance is measured, and anyone responsible for managing operations at any level would be wise to take note. While the traditional performance measures—net income, finance receivables, revenue, and the like—will always be around, their value in the day‐to‐day improvement of operations is increasingly limited. Such financial measures are based on money and how money has been spent or earned over a period of time. Their values may help those at the top steer the organization, but they do little to help the individuals throughout the business adjust or prioritize their daily activities.