What will determine future performance in the corporate environment? We now have tools and research highlighting essential and critical issues that must be considered to achieve sustainable high performance.

Now widely accepted, the Balanced Scorecard (BSC) has gone from fad to practice. The Balanced Scorecard is a matrix of corporate performance measurements that view the organization through four perspectives: critical issues in 4 systems - financial, internal, external and developmental [innovation, learning & growth]. Research stating brand loyalty, growing loyal customers and employee engagement are also leading indicators of future performance potential. [Coffman & Harder, 1998]

Historically, investors have used trailing indicators as an effective method of determining future value. Measures such as profitability, revenues, return on capital, cash flow and economic value added (EVA) are among many other strategies for determining the capacity to perform or what some refer to as Value Creation.

However, in the real time economics of the future, one thing and one thing only will provide the key to future performance—capability. Companies who build capability will survive and prosper in the coming years as turbulence and accelerating change erode traditional business models in fast time.

Building capability starts with the individual and is compounded or increases exponentially as it spreads to work groups, teams and finally organizations through a network effect.

This article contains the following:

What are the key performance indicators in the "capable organization?"  

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