Difference between revisions of "Performance Measurement"

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

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+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===
+*[[Performance Measurement Baseline (PMB)]]
+*[[Performance Measurement Tools]]
+*[[Balanced Scorecard]]
+*[[IT Investment (Information Technology Investment)]]
+*[[Project Portfolio Management (PPM)]]