Performance Measurement will help to:
- Understand what may be causing problems
- Set priority on seeking problem solutions
- Improve decision-making
- Assess customer satisfaction level
- Develop better relationship among customers, suppliers, and other functional areas in the company
- Identify the needs for training based on performance of staff and teams
- Motivate people to do their best
Performance Measurement helps to continuously improve performance. !! What gets attention often gets improved !!
If you can’t measure, you can’t control and
If you can’t control, you can’t manage
There are 3 steps of performance measurement system.
- Step 1 : Deciding what to measure
- Step 2 : Gathering performance data
- Step 3 : Interpreting performance data
We have 3 levels of balance scorecard, that is:
- First level is organization level scorecard; organization level will identify organizational strategy, and then identify Organizational Objective to reach strategy.
- Second Level is Group Department Level Scorecard. In this level, Group/ Department will select Critical Success Factors (CSFs) that the group can impact, and then identify Group/Department Objectives that cascading for Organizational Objectives and then identify group/ department measures/ metrics.
- Third Level is Individual Measures/Metrics Scorecard. In process of individual level, select CSFs that individual can impact, and then individual goal that cascading from group / department measures.