MGMT 410/510

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MGMT 410/510 Topics in Organization
Development April 22
Developing Performance Measurement Systems
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Common Arguments For Why We Cant Measure
Performance
Here we go again. Ive seen it all, MBO, TQM, XYZ
You cant measure what I do. Even if you could,
we dont control the outcomes.
Im tired of being burned. Too many people misuse
measures
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Reasons We Must Measure Performance

• Evaluation forces the definition of goalschange
  objectives
• Evaluation forces the definition of desired
  outcomeschange outcomes
• Evaluation defines how success will be measured
• Evaluation helps to signal problems
• Evaluation facilitates continuous improvement

Burke
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Performance Measurement Systems
Positive Reinforcing Loop
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Creating Successful Measurement Systems

• Leadership is critical in designing and deploying
  effective performance measurement systems.
• A conceptual framework is needed for the
  measurement system.
• Effective internal and external communications
  are key.
• Accountability for results must be assigned and
  well understood.

Serving the American Public Best Practice in
Performance Measurement. National Performance
Review, 1997.
6
Creating Successful Measurement Systems

• Performance measurement systems must provide
  intelligence for decision makers, not just
  compile data.
• Compensation, rewards and recognition should be
  linked to performance measurements
• Performance measurement systems should be
  positive, not punitive.
• Results and progress toward program commitments
  should be openly shared with employees, customers
  and stakeholders

Serving the American Public Best Practice in
Performance Measurement. National Performance
Review, 1997.
7
Developing Measurement Systems

• Lay the Groundwork
• Level of Involvement
• Support from above
• Knowing What You Want to Accomplish
• Measures Development Pitfalls
• How to avoid the output trap
• Reasonable, intelligence test
• When in doubt, ask
• Time whats the short and long term outlook
• Some better than one, none better than a bad one
• Efficiency/Effectiveness Balance
• Proceed for the Right Reasons

Walters, Jonathan. Measuring Up. Governing
Books,1998.