To increase business success, many companies meticulously measure past performance. However, this provides little relevance to future success. The possible one percentage cost -cutting savings are insignificant relative to the potential 100% increased value.
Measuring business performance based on financials is related to the past and is not as important to the creation process.
Management may react too slowly. In the information age, intangible and intellectual assets are especially important for success. Unfortunately, classical ways of managing companies measure only tangible assets.
A Performance Improvement Program (PIP) to increase company value consists of two parts: performance measurement and performance improvement.