AccessMyLibrary provides FREE access to over 30 million articles from top publications available through your library.

Evidence-based performance measures.(required reading)

Business Credit

| November 01, 2004 | Dalton, Francie | COPYRIGHT 2004 National Association of Credit Management. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Proof of performance or the absence thereof: that's what you get with well-defined performance measures. Properly constructed performance measures describe targeted outcomes in both quantitative and qualitative terms, permitting a fair and objective assessment of performance as an organization moves from its current state to its desired state. As a result, rather than speaking of what "seems to be so" or how one "feels about" the performance of a department, colleague or vendor, performance measures provide objective, evidence-based measures of performance.

Establishing valid performance measures isn't easy. But the investment pays tremendous dividends. Individuals can prove their value to organizations; managers can justify rewarding/trimming staff; performance reviews can be more factual and less emotional; and organizations can clarify the value they deliver to employees, customers and shareholders.

Elements Of Performance Measures

There are three elements to effective performance measures: Goals, the results to be achieved; Objectives, the major ways in which goals will be achieved; and Action Plans, the tactical steps necessary to achieve each objective. Each element must be stated in terms that are measurable, achievable and time-specific. No single element should be more than a sentence, and each statement should refer to a single event or occurrence.

Five Most Common Mistakes With Solutions

Misuse of Adjectives: "Top quality", "cost effective", "excellent" and "appropriate" are all good examples of this common error in crafting performance measures. "Conduct an excellent annual conference" can only be subjectively assessed. The technique for correcting this kind of error is the use of a "FIB" question: a "fill-in-the-blank" question that will stimulate greater clarity. Here's how it works. Ask: "Our annual meeting will have been excellently conducted when it --?" Another example: "Ensure our product is top quality". Ask: "Our product will be top quality when it --," or "We will know that our product is top quality when --". Implementing this solution will likely produce numerous responses, each of which is likely to be a new element.

Misuse of Verbs: "Promote", "support", "coordinate", "educate", "attend", "improve" are great examples of this error. "Attend the XYZ meeting on 1/31/04" is not an outcome. Warming a seat is not an accomplishment. The technique for correcting this kind of error is to ask "why" regarding the verb; and be sure to ask "why" in a couple of different ways, for example: "Why am I attending the XYZ meeting?" implementing this solution will likely produce numerous responses, each of which is likely to be a new element.

Related articles from newspapers, magazines, journals, and more
Scorecarding goes global: companies around the world are deriving benefits from...
Magazine article from: Strategic Finance Lawson, Raef Stratton, William Hatch, Toby March 1, 2006 700+ words
...organization (74%), * Many types of performance measures (74%), * The ability to graph performance measures over time (73%), * The ability...actions/initiatives, and performance measures (68%), * Cause-and-effect...
AFP and Stern Stewart & Co. to Offer Online Performance Measures To Nation's...
Press release article from: PR Newswire November 14, 2000 700+ words
...performance measure, at special AFP member discounts. The partnership was unveiled at AFP2000, the association's annual conference, which is being held in Philadelphia. "We're pleased to offer EVA services as part of AFP's financial Web portal...
2003 annual conference & exposition. (Leadership in Changing Times).
Magazine article from: School Administrator December 1, 2002 700+ words
...up today. Register for the 2003 Annual Conference by November 30, 2002, and SAVE...details. Please note: You must be an annual conference registrant to sign up for pre-conference...conference workshops for AASA's 2003 Annual Conference. And the half-day format means...
Leadership in changing times: 2003 annual conference & exposition.
Magazine article from: School Administrator January 1, 2003 700+ words
...Register for the 2003 Annual Conference by November 30...for AASA's 2003 Annual Conference. And the half...evaluation, design job performance measures and instruments...You must be an annual conference registrant to sign...
Annual manual: hitting the high points of IIE's 2004 Annual Conference.(Keeping...
Magazine article from: Industrial Engineer April 1, 2004 700+ words
...year. The IIE Annual Conference hits Houston May...to kick off the Annual Conference. Catch up with...work with dynamic performance measures, a patented process...with this year's Annual Conference. It's an opportunity...
The 1996 GFOA annual conference. (Government Finance Officers Association)
Magazine article from: Government Finance Review August 1, 1996 700+ words
...the earth, the 4,122 delegates to the GFOA's 1996 annual conference, May 19-22, made their way from one end of the convention...ideas about a variety of topics, including evaluating performance measures, establishing benchmarking systems, derivatives, choosing...
AASA announces new pre-conference workshop format for the 2003 Annual...
Magazine article from: School Administrator September 1, 2002 700+ words
...the new session formats and events planned for the 2003 Annual Conference & Exposition. The conference will take place Feb...descriptions with performance evaluation, design job performance measures and instruments, develop a meaningful performance evaluation...
The connection between performance measurement and risk management: a new...
Magazine article from: Strategic Finance McWhorter, Laurie B. Matherly, Michele Frizzell, Deseree M. February 1, 2006 700+ words
...organizational strategy: an SPMS through performance measures and ERM through risk management...combination of financial and nonfinancial performance measures that are chosen to reflect organizational...strategy drives the selection of performance measures at their organization, ...
For more facts and information, see all results
©2009 Gale, a part of Cengage Learning. All rights reserved.
About us | FAQs | Contact us | Privacy policy | Terms and conditions
Other Gale sites: Encyclopedia.com | HighBeam Research | Acquire Content | Books & Authors | Goliath | MovieRetriever | Smart QandA