You should be using performance measures to gauge how well your organization is doing, more specifically you should be measuring effectiveness – how well you are achieving your objectives; and efficiency – how well you are using your resources. As you embark on developing performance measures or improving your current measures, there are guidelines to use.
- Link Performance Measures to Operating Objectives
- Track Historical Trends
- Reporting Must Be Appropriate For Decision-Maker Responsibilities
- Data Must Be Valid, Accurate and Current
- Reports Must Be Valid, Accurate and Current
- Know The Processes and Activities Driving the Data and Reports You Use
- Start With A Few Measures and Use as Few as Possible
- Use the Measures in a Positive Manner
- Know How To Measure Efficiency and Effectiveness
- Using Efficiency and Effectiveness Measures to determine, for example, if you are doing better / worse over time or achieving expectations; or to help identify where your strengths and weaknesses are.
For details and more information go to: http://www.advancingyourorganization.com/?p=1596.
Michael VanBruaene was a KPMG Director and blogs at Michael VanBruaene Organization Performance Improvement Services – Advancing Your Organization (www.AdvancingYourOrganization.com). He can also be contacted at email@example.com.