After creating a measurement profile, it is important to establish a framework for measurement. A sample measurement framework is illustrated in Figure 13.2. The framework requires identification of the organizational strategy. The predominant strategy themes will be explained together with the metrics that typically are associated with them. After specifying the strategic theme or themes, an organization should determine its critical success factors (CSFs). Based on the CSF selections, appropriate and aligned measures can be selected.

Figure 13.2: A Framework for Measurement.

During the process of selecting measurements, a gap assessment may be necessary. Figure 13.3 illustrates this concept. Measuring the alignment between strategies and factors driving the CSFs should be performed for all three elements of the value proposition so that a gap assessment can be developed for operational effectiveness, product innovation, and customer intimacy. Figure 13.3 uses operational effectiveness, whereby a determination can be made regarding the need to rework the strategy or modify operations or both.

Figure 13.3: Measuring Strategic Alignment.