Performance Measurement is really about Performance Measurement, Analysis & Reporting. Why all three? Why not just performance measurement?
Because just measuring performance doesn’t take you anywhere. Industry and government engage in a great deal of performance measurement. Time and effort is spent carefully defining performance measures and gathering the data. So far so good.
From this, averages are calculated, comparisons are made with previous time periods and variance from targets are calculated. But none of these things constitute proper performance analysis. When we report these results to managers, shareholders or the public, we are essentially lying with statistics. That’s not good.
Measuring performance carefully is only the start, proper analytic techniques and reporting formats must be used so that the data not only tells a story, but tells an truthful one.
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