The high-level question about WHAT is: Do we want to measure Value or Performance? Value refers to assets (tangible and intangible), financial/non-financial transactions, value streams in which the organization participates, etc. Performance refers to entities/organizational units, markets, people, processes, etc. (e.g., A Balance Sheet relates to value, a Balanced Scorecard provides insights into performance)

The high-level questions about WHY: What will the measurement enable? Do we need it for status, trend, or both? Does it enable decision-making? Do we need comparability (of value and/or performance)?

The high-level questions about HOW: Is there an objective indicator available? Can we measure directly, or do we need to use proxies? What’s the measurement process? Does the measurement process influence the outcome (and how)? Is it one-time-only or ongoing/repeated? To what extent can it be extended for broader purposes?

If organizations don’t think about the above beforehand, then they end up in situations where things don’t get measured (the measurement never gets implemented), or where it is never acted upon…

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