Question

What are the problems with simply measuring key performance targets in a rather static (say, annual) way, particularly for fast-moving organizations which are exposed to significant external change?

Answer 1

Problems with simply measuring key performance targets in a rather static (say, annual) way, particularly for fast-moving organizations which are exposed to significant external change are explained below in relevant points:

• Technological and Innovation- Technology changes is an important aspect to make the company successful in terms of overall system and management structure.
• Structural Changes - Due to strategc and tactical changes in the company, structural changes may also occur. For example : one company acquires another business.
• Market challenges - There may be sevaral changes in the lifestyle, demand, supply and pricing of products of any company. So, this can also be a major challenge for the company.
• Globalization - As a result of globalization, there is an increased opportunity for the companies. However, there is also increased competition. Threrefore, threats of new entrants is also a major challenge for the fast -moving organizations.