Performance Measurement Systems

Performance Measurement Systems

Measurement Systems are designed to provide limited performance information - using a few key performance indicators - for each Intermediate Result as well as the Strategic Objective. The reported progress, as indicated by these few measures, allows the managers to monitor what is being achieved over time in order to judge whether the development hypothesis and its accompanying activities are actually delivering the desired results.
Therefore reliable performance measurement data are crucial to making important strategic decisions and managing for results.

What needs to be monitored

Results at all functional levels Strategic objectives Special objectives Intermediate results Critical assumptions Outputs and inputs

Characteristics of effective measures

Focus on vital few Relate to strategic goals Include financial & non financial indicators Foster improvement Are well communicated Provide information on level, trend and competitive data Focus on long term well-being of the organization