Why is it important to measure business performance?

Measuring performance Knowing how the different areas of your business are performing can help you to assess where your business is strong, where it is weaker and factors you can change for the better. This should help you to manage your performance proactively and efficiently.

Why is it important to measure process performance?

Measuring process performance allows an understanding of cross-functional performance, and the contribution of each department or unit to the end result. Organisations execute their strategic intent via their business processes. The simple act of measuring process performance often drives improvement.

What is performance measurement and why is it important?

Performance measurement is used to motivate managers to make decisions that benefit the corporation and themselves. Therefore, the key to good performance measurement techniques is to set goals that are realistic and that incorporate decisions over which the manager has control.

What do performance measures need to support the organizational strategy?

Performance measures need to support the organizational strategy. They should provide information for analysis on where improvement needs to be made, and should help manage organizational risk. Effective performance measures communicate what is important to the organization. If the organization is prepared to invest the time

How to choose the right performance measures?

The performance measures should be forward-looking where possible, as mentioned previously about leading measures. To effectively drive behaviours, performance measures need to be something that can be controlled. Otherwise the measures can only be used to monitor the situation and react to changes.

Why is performance measurement an ongoing continuous improvement operation?

It requires the manager to constantly check the performance in order to take corrective actions in case of deviations ensuring that such deviations do not occur gain. Thus the Performance measurement is an ongoing, continuous improvement operation.