Which of the following is a characteristic of effective performance measures?

Effective performance measures are fundamentally rooted in their alignment with business goals and objectives. When performance measures are aligned with strategic aims, they provide a clear framework for evaluating success and ensuring that all efforts contribute to the organization’s mission. This characteristic enables organizations to track progress effectively, make informed decisions, and drive improvements based on relevant data.

By focusing on goals and objectives, performance measures can reflect the organization's priorities and help guide resource allocation, operational activities, and strategic initiatives. This alignment fosters accountability among team members, as everyone is working towards well-defined targets that are connected to the overall vision of the organization.

Complexity in measures can lead to confusion rather than clarity; focusing solely on financial metrics can give an incomplete picture of performance; and allowing for subjective interpretation can undermine the effectiveness and reliability of performance assessments. Hence, clarity and alignment with business objectives are key attributes that render performance measures effective.