Simply because it helps to drive the implementation of the strategy and action plan throughout the year and to bring about changes proactively instead of waiting at the end and having to make adjustments, sometimes drastic.
Robert S. Kaplan and David P. Norton, management gurus, have studied the subject and built a very effective tool; the balanced dashboard.
Why balanced? Because it does not only include financial indicators, but indicators according to 4 balanced perspectives to ensure that the 3 pillars of the organization are satisfied (Customers, HR, Shareholders) and that the key processes involved are effective:
One of the strengths of this tool is that it involves all departments and employees of the company so that everyone can work in the same direction on common objectives.
Because of its visual appearance, it becomes easy to communicate progress to the entire team.
Once the high level objectives have been developed and KPI indicators have been deployed, it is important to identify the key processes that need to be mastered or improved in order to guide your improvement efforts.