This PPT slide, part of the 60-slide Introduction to Balanced Scorecard PowerPoint presentation, emphasizes the importance of using key indicators to measure the achievement of objectives. It introduces the SMART criteria, which serves as a framework for defining effective measures. Each letter in SMART stands for a specific characteristic that a measure should possess.

The first characteristic, "Simple," highlights that measures should be straightforward to access, collate, and calculate. This simplicity ensures that stakeholders can easily understand and utilize the data without unnecessary complexity.

Next, "Measurable" indicates that the metrics must be quantifiable. Examples provided, such as hours worked or lines installed, illustrate the need for concrete data points that can be tracked over time. This quantification allows for objective assessment of progress toward goals.

The third point, "Actionable," stresses the necessity for measures to enable decision-making. If variances from the plan are identified, there must be a capacity to take corrective actions. This ensures that the organization can respond effectively to any deviations from expected performance.

"Relevant" refers to the alignment of measures with the objectives being pursued. It’s crucial that what is being measured directly influences the outcomes that matter most to the organization.

Lastly, "Timely" underscores the need for measures to be determined and assessed frequently. The slide warns that delays in measurement can hinder the ability to take timely and appropriate actions, potentially jeopardizing the achievement of objectives.

Overall, this slide serves as a guideline for organizations looking to establish effective measurement systems that drive performance and accountability.

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Balanced Scorecard