Organizational Performance (cont.) Why is Measuring Organizational Performance Important?(cont.) Increased Ability to Provide Customer Value-must monitor value obtained by customers customers will seek other sources of supply if value is not obtained Impact on Organizationall Reputation strong reputation leads to greater consumer trust and ability to command premium pricing Improved Measures of Organizational Knowledge organizational knowledge-knowledge created by collaborative information sharing and social interaction leading to appropriate action ©Prentice Hall,2002 20-5Organizational Performance (cont.) Why is Measuring Organizational Performance Important? (cont.) – Increased Ability to Provide Customer Value - must monitor value obtained by customers • customers will seek other sources of supply if value is not obtained – Impact on Organizational Reputation - strong reputation leads to greater consumer trust and ability to command premium pricing – Improved Measures of Organizational Knowledge • organizational knowledge - knowledge created by collaborative information sharing and social interaction leading to appropriate action © Prentice Hall, 2002 20-5