Thursday, September 11, 2008

The ‘Measurement Service'

Books of Account
The Secret to GE’s Success
William E. Rothschild
( http://www.tatamcgrawhill.com/ )

When measures added to confusion

Traditional profit measures are hopelessly inadequate as measures to guide the manager’s effectiveness in planning for the future of the business, he wrote in a book on business measures.
“He established a ‘Measurement Service,’ described as a ‘permanent organisation component in Accounting Services.’ This organisation was charged with establishing the specific criteria to be used, communicating them to operations, and then periodically checking to see if the measures were being met,” narrates William E. Rothschild in The Secret to GE’s Success.

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