Management by Measurement

Designing Key Indicators and Performance Measurement Systems

Management by Measurement

Designing Key Indicators and Performance Measurement Systems

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A world that is changing faster and faster forces companies to a continuous performance monitoring. Indicators give the impression to be the real engine of organizations or even the economy at large. But performance indicators are not simple observation tools. They can have a deep "normative" effect, which can modify organizational behaviour and influence key decisions. Companies are what they measure! The selection of good performance indicators is not an easy process. This monograph focuses on the designing of a Performance Measurement System (PMS), knowing that "magic rules" to identify them do not exist. Some indicators seem right and easy to measure, but have subtle, counter-productive consequences. Other indicators are more difficult to measure, but focus the enterprise on those decisions and actions that are critical to success. This book suggests how to identify indicators that achieve a balance in these effects and enhance long-term profitability.



Quality and process indicators
Indicators criticalities and curiosities
The condition of uniqueness in process representation
Performance indicators properties
Designing a performance measurement system
Indicators, measurements, preferences and evaluations: a scheme of classification according to the representational theory.
ISBN 978-3-540-73211-2
Article number 9783540732112
Media type Book
Copyright year 2007
Publisher Springer, Berlin
Length XI, 242 pages
Illustrations XI, 242 p.
Language English