‘Organizational Linkages: Understanding tho Productivity Paradox (1984) iptv np edioperoneDO09045042hra 152 Hl copy 1684, 2050 The Raa] Acaseny of Seles igh ese 152+ _b. SCOnT SOK AND GEORGE In SMITH J + Visibility, ownership, and line of sight must be created for re- sulting measurement systems in order to ensure effective utilization, Line of sight is a term used to represent understanding and/or visibil- ity for cause-and-effect relationships on the part of the person perform- ing. “To what extent is it clear that if do this, this will result?” “What is the relationship between my behaviors and my performance?” Vis- ibility often leads to control, and it certainly leads to improved under- standing of cause-and-effect relationships (Wheeler, 1993). + The process of measurement must be separated from the pro- cess of evaluation. For example, the difference between a control chart, and specifications, requirements, and standards must be understood. + The processes from measurement to data, data to information, portrayal to perception, and decisions to actions must be thoroughly understood in the context of performance measurement. ‘This rather long list characterizes the “new thinking” about mea- surement. In many respects, the concepts are consistent with ideas discussed by Deming (1986), Hackman and Oldham (1976), Kanter (1989), Lawler (1986), and others, with regard to the transformation from con- ‘trol-dominant to commitment-oriented organizations. The requirements for developing measurement systems for world-class competition are substantially different from those on which traditional performance measurement systems are based. The productivity paradox is caused, in part, by an inability to deal with these new requirements. To rem- edy this, the people participating in the process of improving measure- ‘ment systems must be “masters,” that is, they must possess profound knowledge of the new requirements. Further, the design principles for performance measurement systems have been altered substantially. The task of designing management systems, particularly performance mea- surement systems, has become more complex and challenging. In or- der to understand linkage issues, to measure their effects, and to pre- dict their impact so that valid performance evaluation can be conducted at various organizational levels, the design of the measurement sys- ‘tems will have to be approached much more systematically. Identifying Suitable Measures Designers of a measurement system must be aware of the attributes of numerous possible performance measures. This wil ensure that there is a suitable match between the measure selected and the requirements of the measurement system regarding a particular attribute. Four at- tributes of particular interest are sampling rate, character, precision,