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Difference between revisions of "Performance Measurement"

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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.)
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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.
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Often, this leads to the exact opposite outcome:
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*Performance measurement becomes an end in itself consuming inordinate amount of resources and taking away focus from results
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*Incorrect measurement leads to wrong decisions
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*Accurate measurement leads to wrong decisions
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Performance measurement's promise is not realized because managers often:
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*Pick the wrong measures or metrics
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*Focus on the short term
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*Rely on financial measures
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*Measure what is not measurable or does not lend itself to traditional metrics
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*Prefer quantitative over qualitative measures
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===See Also===
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[[Balanced_Scorecard|Balanced Scorecard]]<br />
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[[Information_Technology_Investment_Management_(ITIM)|IT Investment Management]]<br />
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[[IT_Metrics_(Information_Technology_Metrics)|IT Metrics]]<br />
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[[Project_Portfolio_Management_(PPM)|Project Portfolio Management]]

Revision as of 16:47, 6 January 2019

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

Balanced Scorecard
IT Investment Management
IT Metrics
Project Portfolio Management