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Improving the performance of a performance measure

Improving the performance of a performance measure Purpose – The purpose of this paper is to discuss how to design an individual performance measure, which usually means the measurement practitioner must deal with many requirements other than the ones that can be found when designing a complete performance measurement system. Design/methodology/approach – Different requirements suggested in the performance measurement literature from the past 20 years have been sorted out in order to structure the different tasks to conduct when designing a measure. Findings – Explains how to form or select a formula that fulfils the purpose of a measure. Defines 15 parameters that fully specify a measure. Clarifies positive and negative measure properties. Practical implications – Measurement regimes are often built without a clear understanding of what is being measured. The article includes several practical tools that can be used when designing a performance measure. Originality/value – Discusses the question “how to measure?”, while most of past research in the field has been aimed at solving “what to measure?”. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Measuring Business Excellence Emerald Publishing

Improving the performance of a performance measure

Stefan Tangen
Measuring Business Excellence , Volume 9 (2): 8 – Jun 1, 2005
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Publisher
Emerald Publishing
Copyright
Copyright © 2005 Emerald Group Publishing Limited. All rights reserved.
ISSN
1368-3047
DOI
10.1108/13683040510602830
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to discuss how to design an individual performance measure, which usually means the measurement practitioner must deal with many requirements other than the ones that can be found when designing a complete performance measurement system. Design/methodology/approach – Different requirements suggested in the performance measurement literature from the past 20 years have been sorted out in order to structure the different tasks to conduct when designing a measure. Findings – Explains how to form or select a formula that fulfils the purpose of a measure. Defines 15 parameters that fully specify a measure. Clarifies positive and negative measure properties. Practical implications – Measurement regimes are often built without a clear understanding of what is being measured. The article includes several practical tools that can be used when designing a performance measure. Originality/value – Discusses the question “how to measure?”, while most of past research in the field has been aimed at solving “what to measure?”.

Journal

Measuring Business Excellence – Emerald Publishing

Published: Jun 1, 2005

Keywords: Performance measurement (quality); Performance measures

References

  • Designing performance measurement systems for just in time operations
    Crawford, K.; Cox, J.
  • For good measure
    Cross, K.F.; Lynch, R.L.
  • Factors that play a role in ‘managing through measures’
    Franco, M.; Bourne, M.
  • Issues in developing a performance criteria system for an organisation
    Globerson, S.
  • The balanced scorecard – measures that drive performance
    Kaplan, R.S.; Norton, D.P.
  • Measuring performance in a changing business environment
    Kennerley, M.; Neely, A.
  • The performance prism in practice
    Neely, A.; Adams, C.; Crowe, P.
  • Designing performance measures: a structured approach
    Neely, A.; Richards, H.; Mills, J.; Platts, K.; Bourne, M.
  • A framework for auditing and enhancing performance measurement systems
    Medori, D.; Steeple, D.
  • The productivity paradox
    Skinner, W.
  • An overview of frequently used performance measures
    Tangen, S.
  • Performance measurement: from philosophy to practice
    Tangen, S.
  • Evaluation and revision of performance measurement systems
    Tangen, S.
  • Linking firm strategy to operating decisions through performance measurement
    Wisner, J.D.; Fawcett, S.E.