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Whilst performance measurement and management systems can be instrumental in generating success there are many pitfalls. This chapter describes those pitfalls and how to avoid them. They include creating silos which encourage individuals or teams to work as discrete units, sometimes in competition with each other; concentrating on either too wide or too narrow a focus which can lead to dilution of effort or complete neglect of important areas of the organisation and taking too long to act. The authors discuss the tension between a drive for short-term results and the need for long-term planning to ensure sustainability of the organisation, the value of looking to the past and also to the future, and the balance that must be achieved between structure and flexibility. There is a discussion of reward systems and aligning them to goals and values. Finally, there is a section on problems in implementing strategy.

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