Difference between revisions of "Performance Measurement"
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(Performance measurement is a management discipline that focuses on quantifying the resources consumed and results achieved from a business process or operation. The objective is to create the highest possible value for the lowest possible cost and risk.) |
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| − | ' | + | Performance measurement is a management discipline that focuses on quantifying the resources consumed and results achieved from a business process or operation. The objective is to create the highest possible value for the lowest possible cost and risk. |
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| + | Often, this leads to the exact opposite outcome: | ||
| + | *Performance measurement becomes an end in itself consuming inordinate amount of resources and taking away focus from results | ||
| + | *Incorrect measurement leads to wrong decisions | ||
| + | *Accurate measurement leads to wrong decisions | ||
| + | |||
| + | Performance measurement's promise is not realized because managers often: | ||
| + | *Pick the wrong measures or metrics | ||
| + | *Focus on the short term | ||
| + | *Rely on financial measures | ||
| + | *Measure what is not measurable or does not lend itself to traditional metrics | ||
| + | *Prefer quantitative over qualitative measures | ||
| + | |||
| + | |||
| + | ===See Also=== | ||
| + | [[Balanced_Scorecard|Balanced Scorecard]]<br /> | ||
| + | [[Information_Technology_Investment_Management_(ITIM)|IT Investment Management]]<br /> | ||
| + | [[IT_Metrics_(Information_Technology_Metrics)|IT Metrics]]<br /> | ||
| + | [[Project_Portfolio_Management_(PPM)|Project Portfolio Management]] | ||
Revision as of 16:47, 6 January 2019
Performance measurement is a management discipline that focuses on quantifying the resources consumed and results achieved from a business process or operation. The objective is to create the highest possible value for the lowest possible cost and risk.
Often, this leads to the exact opposite outcome:
- Performance measurement becomes an end in itself consuming inordinate amount of resources and taking away focus from results
- Incorrect measurement leads to wrong decisions
- Accurate measurement leads to wrong decisions
Performance measurement's promise is not realized because managers often:
- Pick the wrong measures or metrics
- Focus on the short term
- Rely on financial measures
- Measure what is not measurable or does not lend itself to traditional metrics
- Prefer quantitative over qualitative measures
See Also
Balanced Scorecard
IT Investment Management
IT Metrics
Project Portfolio Management