Indicators: Helpers or Hindrances?
Ibáñez, Raúl A.; Rosanas Martí, Josep Maria
Publisher: Estudios y Ediciones IESE
Original document: Indicators: Helpers or Hindrances?
“If you can’t measure it, you can’t manage it.” Many companies have turned this axiom into a dogma and forsaken the principles that should underlie good management planning and control systems. Using a company case study, the authors offer insights into who should get involved and they propose a four-stage process for how to go about “selecting,” “designing,” “measuring, implementing and deploying” and finally, “using” a system of indicators. The opportunities and risks identified at each stage serve as a useful guide that readers can apply to their own organizational settings. The authors attempt to lift the discussion away from strictly technical aspects and present the topic more from a manager’s point of view, examining the impact of these measurement tools on an organization’s ability to function efficiently, as well as considering how they affect people’s behaviors and learning processes.
Tools and Frameworks:
> “The Indicator System as a Process” walks readers through the various questions and stages they need to review, to make sure their indicators are actually helping.
> “A Representative Example from the ICT Sector” considers how one company handled the process, so that readers can learn from that experience and address deficiencies in their own systems.
General Electric, DuPont, an average-sized company from the Information & Communications Technology (ICT) sector whose operations include services, projects, outsourcing and the marketing of infrastructure and equipment
Based on a review of relevant literature and a study of a Spanish IT company.
About the Authors:
Raúl Ibáñez is a professor of Control at the San Telmo International Institute.
Josep M. Rosanas is a professor of Accounting and Control at IESE, and the Crèdit Andorrà Chair of Markets, Organizations and Humanism.