Designing a Performance Measurement System
The present chapter discusses a core problem of quality management for organizations: establishing and maintaining a performance measurement system. Flowing from the mission and strategic planning of one organization, a performance measurement system is supposed to include the data to collect, analyze, report and, finally, use to make sound business decisions.
The remainder of this chapter is divided into eight sections. Sections 5.1 and 5.2 present the basic characteristics of an integrated performance measurement system. Section 5.3 discusses some popular approaches to develop performance measurement systems: the Balanced Scorecard , the Critical Few , the Performance Dashboards, and the EFQM model. Description is supported by the use of practical examples. Sections 5.4, 5.5 and 5.6 discuss how to develop/synthesise indicators and maintain an effective performance measurement system. Sections 5.7 and 5.8 deal with the possible misuse of indicators and their impact on organizations.
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