Performance feedback is very important at any and every level. Feedback helps to direct future actions and is also a motivating factor in terms of making improvement or maintaining the status quo of effective present performance. In order for feedback to be relevant and accurate, there must be a standard for the measurement of performance.
- Anthony Inman addresses Performance Measurement on Reference for Business. As stated, business performance measures generally cover five basic and interlinking areas which include money, output/input relationships, customer emphasis, innovation and adaptation to change, and human resources. Money is usually measured as profit and output/input relationships speak specifically to productivity.
Financial measures alone are not sufficient to assess business performance. Other performance indicators such as time, quality, and service are more appropriate measures at times. To be effective, performance measures should evolve with the passing of time. Failure in this regard can result in the organization’s inability to be an effective and efficient global competitor.
eCornell’s Measuring and Improving Business Performance professional leadership certificate is an important tool that you can add to your business’s performance-measurement toolkit. Learn more about the certificate here. Other leadership certificates can be found at this link.