Presented By:Harshit Aditi

What is Performance Measurement?

Performance Measurement is a program management

tool. It is……

an organized process for gathering information to

determine how well programs and activities are

meeting established needs and goals.

What are Performance Measures?

Performance measures 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.

Types of Performance Measures

Performance measures are divided into five

types.

Process

MeasuresOutput

Measures

Impact

Measures

Outcome

Measures

Input

Measures

Need For Performance Measurement

• To ensure customer requirements have been met

• To be able to set sensible objectives and comply with them

• To provide standards for establishing comparisons

• To provide visibility and a “scoreboard” for people to monitor their own performance level

• To highlight quality problems and determine areas for priority attention

• To provide feedback for driving the improvement effort

Benefits of Performance Measurement

• Set goals and standards.

• Detect and correct problems.

• Manage, describe, and improve processes.

• Gain insight into, and make judgments about, the

effectiveness and efficiency of

programs, processes, and people.

• Determine whether organizations are fulfilling their

vision and meeting their customer-focused

strategic goals.

Identify the process flow

Process of Performance Measurement

Collect data

Analyze/report actual

performance

Compare actual

Performance to goal(s)

Take corrective actions

If necessary

Make changes to bring

Back in line with goal

Determine need of

new goal(s)

Identify the critical

activity to be measured

Establish performance

goal(s) or standards

Establish performance

measurement(s)

Role of Performance Measurement

• Monitoring

• Control

• Improvement

• Coordination

• Motivation

Key(s) of success for an Organisation

• Specific

• Measurable

• Achievable

• Relevant

• Timely

What Performance Measures Won’t Tell

You

• The Cause and Effect of Outcomes Are Not Easily

Established.

• Poor Results Do Not Necessarily Point to Poor

Execution.

• Numerical Quotas Do Not Fix Defective

Processes.

• Measurements Only Approximate the Actual

System.

• Performance Measures Do Not Ensure

Compliance with Laws and Regulations.

To summarize a performance measurement

The use of performance measures in business is hardly

new. Companies have been measuring

costs, quality, quantity, cycle

time, efficiency, productivity, etc., of

products, services, and processes. What is new to

some extent is having those who do the work

determine some of what should be measured in order

that they might better control, understand, and

improve what they do. All high-performance

organizations, whether public or private, are, and must

be, interested in developing and deploying effective

performance measurement so that they can remain

high performance organizations.

THANK YOU

Prestented by

Harshit kasliwal