Performance measure

Definition

A unit of measurement that measures performance. It shows how effectively we’re performing an activity, opportunity or lever that we’ve defined.

David Parmenter defines performance measures as being tied to a team or a cluster of teams working closely together for a common purpose. Good or bad performance becomes the responsibility of one team – which therefore provides clarity and ownership. Performance measures show what teams are delivering.

Purpose

Success depends on lots of things working independently and in a chain at different levels. Performance measures let us see how effectively they’re working at a granular level, so we can see where to improve and allocate more resources.

Synonyms

None yet defined

Parent term

Measure

Child terms

Lever, opportunity, activity

Source

Partially adapted from David Parmenter’s book, Key Performance Indicators (KPIs) third edition, (2015: 3–4). Available online

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