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Performance Measurement
1. An effective performance measurement framework rarely is derived from one single approach.
2. Each of the methods outlined comes with its own unique viewpoint and valuable insight.
3. Companies may adopt elements of a number of approaches or comprehensively apply only one approach. What is likely is that we will change the approach over time. It is most likely that new ideas that innovate are welcome and that new perspectives which provide enhanced insights will be adopted. At the same, time we rarely discard the experience we have gained.
4. We are now entering a period when information will be available both in volume and speed. With stakeholder influence growing there is an increasing demand for information - in particular comparative information. Which product, school, hotel or business school is best? Which is cheapest or offers best value for money?
5. Of the performance measurement systems outlined here, the most widely practised at the moment, appears to be the balanced scorecard, benchmarking and theory of constraints (TOC). None of these approaches negates the purpose of the other ones and they can all exist simultaneously.
6. Finally, the term 'performance measurement' is changing to performance management which appears to elevate a managerial activity to a function. Perhaps we may soon see performance managers who will have specific responsibility to implement and maintain suitable performance measurement systems.
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Productivity is a relative measure is true or false
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