Lesson 1: Measuring Success

Prescriptive Measurement Systems

Sometimes, an organization implements a prescriptive measurement system.


Many such systems are available to businesses, such as Total Quality Management (TQM), Balanced Scoreboard, Six Sigma, and Sum Total. They rate businesses against established criteria. Some systems have technological components within them. Their goals are to use measurement to assist the business to become as successful as possible.


Why is this Important?


To evaluate continually how a business is succeeding is important to prevent its failure. Owners and managers passionate about their businesses are more motivated to work hard for success. Poor management often is cited as the number one reason for failure.