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Understanding the Measurement That Matters Most

Long ago, management guru Peter Drucker gave the business world Management by Objectives, or MBO. The insight was this: give employees measurable goals. Instead of waiting around to be told what to do, team members can agree on how to meet the goals and then get right to work.

The idea freed up company leaders and empowered employees, spawning an alphabet soup of offspring. Plenty of companies have tried OKRs (developed by Intel CEO Andy Grove and embraced by Larry Page, co-founder of Google); SMART Goals; and of course good old-fashioned key performance indicators, or KPIs. They all rely on the same original premise.

Read More on Inc.