Operational measurements for product development organizations - Part 1
Project managers in product development organizations typically use various performance measurements to track progress, yet the effective operation of any system requires the proper use of operational measurements. Examples of performance measurements include business measurements (revenues, cost, profit, return on investment, etc.), averaged local performance measurements, normalized local performance measurements, and cost-focused measurements. Operational measurements, on the other hand, measure the instantaneous state of the organizational system. Product development organizations need goal-focused operational measurements to keep day-to-day decisions aligned with the organization's defined goals. This article proposes that Goldratt's Critical Chain Method enables such operational measurements, a subject to be covered in Part 2.