Performance Measurement Methods

1. One of the methods for improving how to measure the performance of the organization is
to not only measure your own organization but also look at what other organizations are
doing and to be very specific, how they are measuring their performances. Indeed, it
becomes a difficult tasks for the organization to obtain the real time performance data of
other organizations, but being a bit creative, they can complete this task. For instance,
such information can be obtained from common customers and in this way, the privacy
and confidentiality of competitors would not be hampered as well.
2. Another important mean which can improve performance measurement of any
organization is to look forward. With this, it means that the organization should not only
consider the performance measurement methods along with their competitors methods
but they also need to assess those methods which are being followed by other benchmark
organizations but have not been adopted the industry in which it is operating. Hence, the
company is required to assess not only its own and its competitors performance
evaluation methods but also anticipate the upcoming and futuristic methods of measuring
performances.
3. Last but not the least, the managers of any organization should have faith in quantitative
areas of the organization but a considerable effort should also be drawn towards
analyzing and assessing the qualitative factors which are integral parts of those
quantitative figures. In short, quantitative figures alone can misguide management and
the only way to get the idea of the whole story is to take into account both quantitative as
well as qualitative factors in conjunction. In this way, organization might be able to
assess the performance rather in a fruitful manner.
Reference

Likierman, A. (2009). The five traps of performance measurement. Harvard Business Review,
87(10), 96101
Raynor, M. E., & Ahmed, M. (2013, April). Three rules for making a company truly great: A
quest for reliable data on organizational excellence yields surprisingly simple guidelines.
Harvard Business Review, 91(4), 108117