【正文】 tch.” Companies such as Costco Wholesale Corporation, McDonald’s Corporation, and Dell Computer Corporation are models of this strategy.It could be said that strategy to an organization is exactly what the root to a tree. Therefore, strategy is of critical importance in today39。s business environment of rapid change and unforgiving petition. Many organizations devote extensive resources to developing a winning strategy. However, recent research findings from the Balanced Scorecard Collaborative in Lincoln, Mass., indicate that nine out of ten panies fail to execute the strategies they set for themselves。 only 5 percent of employees understand pany strategies。 60 percent of today’s panies fail to link their budget to their strategies。 and 85 percent of panies’ executive teams spend less than one hour per month discussing strategy. Here is the headache. Corporations hold the written strategies, but seldom put them on the table. Virtually there is no strategy. Thus timely and efficient munication throughout the whole organization is extremely important. From chairman, CEO as well as top executives to individual employees, each one should have a clear knowledge and understanding of the pany’s strategy. How to execute it and what it requires should be borne in mind, too. For managers this means deciding what you need to do in response to current and anticipated conditions, deciding what skills, resources, systems and processes are needed to perform well now, and knowing how to change these in order to perform well in the future when the whole world might be different.Therefore, strategy is based on a clear understanding of the environment or conditions in which you operate. For top executives, strategy means having a vision of what is possible under these conditions, knowing what actions are needed to take to attain the vision, clarifying issues considered as being important, then implementing these actions (often called your values), and being able to measure performance accurately as progress can always be monitored, measured and evaluated. Key Performance Indicators and Objective Setting Key Performance indicators (KPI) are defined as the financial and nonfinancial quantitative measurements that are collected by the organization, either continuously or periodically, and used by the management to evaluate the extent of progress towards meeting the organization’s defined outes.There are, however, numerous types of indicators such as input, output, oute impact, relevance, risk, efficacy, efficiency and effectiveness indicators.Oute indicators are defined as those indicators that measure the quantity and quality of the results achieved through the provision of goods and services and can, for instance, include the following:l l Reduced incidence of disease (through vaccinations) orl l Reduced mortality or lower health costs (through improved family health practices or improved nutrition, or cleaner air and water).Output indicators on the other hand measure the quantity (and sometimes the quality) of the goods and services created or provided through the use of inputs and can, for instance, include the following:l l Number of clients vaccinated (by a health program) orl l Pollution control measures installed or incentives or regulations enforced (a pollution control or air or water quality improvement program).In order for performance indicators to work, a management structure and incentives that value results need to be in place. Performance Indicators are a tool and on their own they can do nothing, but in the proper environment they can inspire action. Consequently, Performance measures must:l l Be focused on longterm, multidimensional perspective, not just shortterm financial perspectivel l Be linked to performancel l Be guided by the vision and principles and supported by managementl l Not be sold as a selfcontained solution which will not in themselves produce higher levels of effectiveness, efficiency and qualityl l Follow from existing systems and processes, and should be progressively improved and enhanced.It is thus critical that management regard performance measurement as an integral part of the organization’s strategic plan. In order to make the strategy and plan effective, monitoring and evaluation must be addressed during project design. Once strategic guidelines and outes have been defined and indicators have been selected, the next consideration should be the requirements for data collection and management and the use of feedback from data.Indicators should be based on such principles as:l l They should be relevant and selective (a few and meaningful)。l l They should be quantitative and qualitative。l l They should focus on outes as well as effectiveness, and also be able to measure the performance of the organization。 andl l Data required must be easily available or data requirements should be included in the project design to enable analysis. Performance indicators must be based on the unique objectives of its units, functions and individuals as an organization marches to achieve the vision and strategy. These performance indicators will be based on an underlying framework that links objectives with program ponents and their respective inputs, activities, outputs at different implementation stages. The framework should be objectivedriven, since any action is aimed at achieving its objectives. Action PlanningIn an effective organization, work is planned out in advance. Action Planning means setting perform