would rather maintain the relatively diffuse, easily fudged and hard to attribute accountabilities common under traditional functional, budget- and allocation-driven measurement schemes.

Regardless of the tool used to source and scope the change agenda, good execution in implementation requires planning and attention to detail, especially on the people side. It is not just disciplined project management. Together with the people items raised in Phase Four, measures, accountability, management, commitment, and communications remain the foundation of business basics.

In the context of change management, the most constructive way to systematically reflect, manage, and exploit the

organization's character is to recognize its inherent, underlying structure together with key business performance loops—the various spheres of separate but integrated performance influence embedded within the business (see Exhibit 4.) Any entity, including government agencies and not-for-proflts, should be driven by a clear strategy. Ideally, the organization's structure and its process structure should align and be linked to a performance system that enables and promotes the achievement of strategic goals. Similarly, its functional substructure of strategic business units, divisions, departments, operational entities, support units, and process inventory will be aligned with the overall organization structure and system to maximize corporate performance. And on the human side, the jobs of individual employees, supervisors, and managers must be

aligned with the objectives of their units and with the requirements of the processes to which they contribute.

Detailed in the bottom half of Exhibit 4, these three spheres of leverage are (1) the Strategic Loop, (2) the Management Loop, and (3) the Activity Loop respectively. Together, the three performance loops vertically link the horizontal components of the business' performance architecture. The diagram in the top half of the exhibit shows how measures are set, how they flow, and how they are collected down the system/process/activity aspect of the organization as a system and how they are managed and consolidated back up the job/function/organization aspect of the organization.

To implement effective, lasting, and sustainable change, each of these loops must be addressed in a