The Measurement component is then how you measure both the performance of the organization and the performance of the individuals. The important aspect of Measurement is that it occurs frequently, at least quarterly, and that the measures of the people are aligned with the measures of the organization.
The Reward component links the measures of organizational and individual performance to the pay of individuals, so every person in an organization’s pay is linked to their measures of performance that they affect.
The Report component reports both organizational and individual performance and giving people the information and feedback they need to help them improve performance and again, that is a process that needs to be at least quarterly.
The Analyze component is about using models and analytics and other tools to automate the process of analyzing data so that answers to key business questions are understood by managers and employees.