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Managers and constituents of industries are increasingly concerned about measuring and managing organizational performance. However, launching a new measurement system goes beyond defining new metrics or developing new displays of existing data. However, as Bourne and Neely (2003) point out, there is some evidence that many of these implementations are not successful. This paper initially examines the most difficult elements in establishing and launching a management performance measurement system. The next step after the establishing of a performance measurement system, is to specify the essential elements in defining and selecting KPIs. Unfortunately, different people have very clear and different definitions for what constitutes the "measure" part and thus there is no "exactly" in such a process (Lichiello and Turnock, 1997). As such, this paper attempts to approach the essential elements involved in defining and selecting KPIs for effective performance management.