How do you know if your organization is performing as well as it could be? How can you identify its relative strengths and weaknesses? We rely on two tools:
. The best measure of overall performance is an organization's ability to make good decisions, make them quickly and execute them effectively, all without too much (or too little) effort. We use what we call a decision scorecard to assess how your organization is doing compared with competitors and peers. The scorecard includes all the elements of decision effectiveness--quality, speed, yield and effort--and charts your performance on each one. It allows you to benchmark the results against Bain's database of more than 1,000 organizations around the world.
Organizational scorecard. Once you know your overall score, you need to know which elements of your organization are contributing to decision effectiveness and which are getting in the way. So the second part of our assessment creates an organization scorecard. This scorecard evaluates your structure, processes, incentives and many other elements, helping you home in on the barriers to better decision making and execution. These scores, too, can be benchmarked against other organizations in Bain's database.
To perform these twin assessments, we typically survey a broad cross-section of people, including those on or close to the frontline. We then flesh out the survey data, where appropriate, with supplementary information from interviews or group discussions, "X-ray" analyses of decisions that have gone well or badly and so on. The benchmarks help companies identify their most critical issues and highlight opportunities for improvement. Just as checking the bathroom scale can launch you on a weight-loss program, the assessments alone often have a galvanizing effect on an organization.
How does your organization score? Take the quizzes to get a quick impression of how a structured assessment of decision effectiveness might improve the quality, speed and effort of your company's decisions.