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Business Development Tools

Performance Measurement

How do Performance Measures tie into Continuous Improvement?

Performance measures are developed as part of the strategic planning process and should flow from the organization's mission, goals, objectives and action plans. Performance measures provide the data that will be collected, analyzed, reported and ultimately used to make sound business decisions. They direct operations by documenting progress towards established objectives, identifying areas of both strength and weakness, driving business improvement and justifying budgetary expenditures.

In a nutshell, performance measurement supports organizational existence. Performance measurement systems succeed when the organization's strategy and performance measures are in alignment.

The performance measures give life to the mission and vision by providing a focus that lets each employee know how they contribute to the success of the organization.

Benefits of Performance Measurement:

Performance measures quantitatively tell us something important about our services and the processes that produce them. They are a tool to help us understand, manage and improve what our organizations do. Effective performance measures can let us know:

  • How well we are doing
  • If we are meeting our goals
  • If our customers are satisfied
  • If our processes are in statistical control
  • If and where improvements are necessary

Performance measures provide us with the information necessary to make intelligent decisions about what we do.

"Reinventing Government" - David Osborne and Ted Gaebler

  • If you don't measure results, you can't tell success from failure.
  • If you can't see success, you can't reward it.
  • If you can't reward success, you're probably rewarding failure.
  • If you can't see success, you can't learn from it.
  • If you can't recognize failure, you can't correct it.
  • If you can demonstrate results, you can win public support.