Performance Measures
The definition of performance measures is the process and/or technique used to track, compare, and analyze an organization’s progress in meeting its goals and objectives. The purpose of performance measures is to identify areas where improvements need to be made and to track those improvements over time.
There are many different types of performance measures, but they all share a few common features. First, all performance measures must be quantifiable. This means that they must be able to be expressed as a number so that they can be compared and analyzed. Second, all performance measures must be specific. This means that they should be clear and concise so that there is no confusion about what is being measured. Lastly, all performance measures must be relevant. This means that they should be directly related to the organization’s goals and objectives.
Performance measures can be classified into three broad categories: input measures, output measures, and outcome measures. Input measures track the resources that an organization puts into achieving its goals. Outputmeasures track the results of an organization’s efforts in terms of how those results compare to the organization’s goals. Outcome measurestrack the impact of an organization’s work on its beneficiaries or on society as a whole.
No matter what type of performance measure is being used, it is important to remember that all performance measures are only tools. They are not perfect representations of reality, and they should never be used as such.
