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Difference between revisions of "Performance Measurement"

(Performance measurement is a management discipline that focuses on quantifying the resources consumed and results achieved from a business process or operation. The objective is to create the highest possible value for the lowest possible cost and risk.)
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===See Also===
 
===See Also===
[[Balanced_Scorecard|Balanced Scorecard]]<br />
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*[[Performance Measurement Baseline (PMB)]]
[[Information_Technology_Investment_Management_(ITIM)|IT Investment Management]]<br />
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*[[Performance Measurement Tools]]
[[IT_Metrics_(Information_Technology_Metrics)|IT Metrics]]<br />
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*[[Balanced Scorecard]]
[[Project_Portfolio_Management_(PPM)|Project Portfolio Management]]
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*[[IT Investment (Information Technology Investment)]]
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*[[Project Portfolio Management (PPM)]]

Latest revision as of 12:57, 5 January 2023

Performance measurement is a management discipline that focuses on quantifying the resources consumed and results achieved from a business process or operation. The objective is to create the highest possible value for the lowest possible cost and risk.

Often, this leads to the exact opposite outcome:

  • Performance measurement becomes an end in itself consuming inordinate amount of resources and taking away focus from results
  • Incorrect measurement leads to wrong decisions
  • Accurate measurement leads to wrong decisions

Performance measurement's promise is not realized because managers often:

  • Pick the wrong measures or metrics
  • Focus on the short term
  • Rely on financial measures
  • Measure what is not measurable or does not lend itself to traditional metrics
  • Prefer quantitative over qualitative measures


See Also