Failure to regularly reassess your objectives and measures
Things change. The economy shifts. New competitors emerge. Your company or unit modifies its strategy. Your customer base changes. Technology advances. What was significant to your company's success three years ago may no longer be significant today.
Your performance objectives and metrics need to be relevant to current business conditions, yet you also want to keep metrics as consistent as possible over time so you can compare historical performance. The solution? Regularly assess changes in your external and internal environment. And strive to maintain a balance: Keep objectives and metrics consistent where possible and appropriate, modifying them only if necessary to reflect changing realities.
Avoiding the pitfalls described above is critical to accurately measuring your group's performance. When you collect data that truly reflect what's going on in your group, you can more effectively manage your own and your employees' performance.