Performance measurement is the needle and thread that tie together strategy and execution and turn the LEERM into reality. It enables companies to achieve alignment and integration throughout the organization. More importantly, it allows people to measure the right things so everyone can tell if things are getting better.

Often there are disconnects between strategic performance and daily improvement activities. People do not set these disconnects up on purpose; they just happen because strategic improvement is a core competency that organizations must develop over time.

Performance measurement is not only concerned with measuring the right metrics. Performance measurement includes many levels, and it must be designed to link and align the organization. It must create that hard-wired spiral between the organization's strategy and its daily improvement activities. Otherwise, initiatives tend to wander away from the original objectives.

Performance measurement is one of those topics that everyone knows everything about, except in practice. Remember the other theme throughout this book: There is a difference between knowing how to do something and doing it right every minute of every day.

In the LEERM, the scope of performance covers the extended enterprise, the enterprise, core business processes, and daily operations performance.

The LEEAP is the framework for measuring our LEERM model. The LEEAP framework incorporates the balanced scorecard concepts of customer, finance, internal business process, and learning/growth via 7 best practices and principles categories and 42 criteria (subcategories).