Emphasis on Pieces of the System:

Traditional criteria separate organizations into pieces, treating each like independent body. Each piece represents different departments in an organization, which don't bother about the whole performance of the system rather worried more of its own. The idea behind this is that if the specific performs well, this shall certainly improve the overall performance of the system. Of course this is opposite to the dynamics of universal systems behaviour, that is, that optimizing subsystem performance does not optimize.

Emphasis on the Past and the Present:

Traditional measurement criteria emphasize performance in recent review periods. It also persuades actions to attain short-term goals. For instance, outsourcing of certain components is built to diminish plant operating expenses, which in turn result in larger dividends quickly. Likewise, activities like research and development of new product, procurement of new equipment are given zero credit with traditional measures as they enhance immediate expenses. Traditional measures discourage activities that make benefits in the long run by avoiding the benefits of improvement efforts.