What is Performance Measurement?
Performance Measurement is a program management
tool. It is……
an organized process for gathering information to
determine how well programs and activities are
meeting established needs and goals.
What are Performance Measures?
Performance measures let us know:
• how well we are doing
• if we are meeting our goals
• if our customers are satisfied
• if our processes are in statistical control
• if and where improvements are necessary.
Types of Performance Measures
Performance measures are divided into five
Need For Performance Measurement
• To ensure customer requirements have been met
• To be able to set sensible objectives and comply with
• To provide standards for establishing comparisons
• To provide visibility and a “scoreboard” for people to
monitor their own performance level
• To highlight quality problems and determine areas for
• To provide feedback for driving the improvement
Benefits of Performance Measurement
• Set goals and standards.
• Detect and correct problems.
• Manage, describe, and improve processes.
• Gain insight into, and make judgments about, the
effectiveness and efficiency of
programs, processes, and people.
• Determine whether organizations are fulfilling their
vision and meeting their customer-focused
Process of Performance Measurement
Identify the process flow performance
Identify the critical Compare actual
activity to be measured Performance to goal(s)
Establish performance Take corrective actions
goal(s) or standards If necessary
Establish performance Make changes to bring
measurement(s) Back in line with goal
Determine need of
Role of Performance Measurement
Key(s) of success for an Organisation
What Performance Measures Won’t Tell
• The Cause and Effect of Outcomes Are Not Easily
• Poor Results Do Not Necessarily Point to Poor
• Numerical Quotas Do Not Fix Defective
• Measurements Only Approximate the Actual
• Performance Measures Do Not Ensure
Compliance with Laws and Regulations.
To summarize a performance measurement
The use of performance measures in business is hardly
new. Companies have been measuring
costs, quality, quantity, cycle
time, efficiency, productivity, etc., of
products, services, and processes. What is new to
some extent is having those who do the work
determine some of what should be measured in order
that they might better control, understand, and
improve what they do. All high-performance
organizations, whether public or private, are, and must
be, interested in developing and deploying effective
performance measurement so that they can remain
high performance organizations.