Measuring Performance

This is the digital version of the printed book (Copyright © 1996). Based on an award-winning doctoral thesis at Carnegie Mellon University, Measuring and Managing Performance in Organizations presents a captivating analysis of the perils of performance measurement systems. In the book’s foreword, Peopleware authors Tom DeMarco and Timothy Lister rave, “We believe this is a book that needs to be on the desk of just about anyone who manages anything.” Because people often react with unanticipated sophistication when they are being measured, measurement-based management systems can become dysfunctional, interfering with achievement of intended results. Fortunately, as the author shows, measurement dysfunction follows a pattern that can be identified and avoided. The author’s findings are bolstered by interviews with eight recognized experts in the use of measurement to manage computer software development: David N. Card, of Software Productivity Solutions; Tom DeMarco, of the Atlantic Systems Guild; Capers Jones, of Software Productivity Research; John Musa, of AT&T Bell Laboratories; Daniel J. Paulish, of Siemens Corporate Research; Lawrence H. Putnam, of Quantitative Software Management; E. O. Tilford, Sr., of Fissure; plus the anonymous Expert X. A practical model for analyzing measurement projects solidifies the text–don’t start without it!

Financial measures have traditionally been the cornerstone of the perform ance measurement system. In recent years, there has been a shift from treating financial figures as the foundation for performance measurement to treating them as one among a broader set of potential financial measures. Changes in cost structures and the manufacturing and competi tive environment have been responsible for the change of emphasis. In today's worldwide competitive environment companies are compet ing in terms of product quality, delivery, reliability, after-sales service and customer satisfaction. None of these variables are measured by traditional financial measures, despite the fact that they represent the major goals of world-class manufacturing companies. By focusing mainly on financial variables there is a danger that the performance reporting system will motivate managers to focus exclusively on cost reduction and short-term profitability and ignore many of the critical factors that determine long-term business success. The key to success, in today's global economy, is total customer satisfaction. To achieve this, companies must develop performance measures that drive employees to control processes that satisfy customer expectations. In particular, performance measures should provide process-level information that motivates employees to achieve the responsiveness and flexibility that companies require to compete on a global basis. Responsiveness is achieved by building relationships that lead to satisfied customers, suppliers and employees. Flexibility is achieved by reducing output variation in proceSfes; for example, the reduction of lead times and delays are both necessary for sustained competitive excellence and long-term profitability.

In recent years, a commitment to increased accountability and improved performance has become essential in both governmental agencies and nonprofit organizations. To help managers and executives in their ongoing quest for greater accountability and improved performance Theodore H. Poister, offers a comprehensive resource for designing and implementing effective performance measurement systems at the agency level. The ideas, tools, and processes in this vital resource will help organizations develop measurement systems to support such results-oriented management approaches as strategic management, results-based budgeting, performance management, process improvement, performance contracting, and employee incentive systems. Using this book as a guide, public and nonprofit organizations can accurately measure outputs, efficiency, productivity, effectiveness, service quality, and customer satisfaction, and use the resulting data to strengthen decision-making and improve agency and program performance. Read a Charity Channel review: http://charitychannel.com/publish/templates/?a=36&z=25

New edition of a classic guide to ensuring effective organizational performance Thoroughly revised and updated, the second edition of Managing and Measuring Performance in Public and Nonprofit Organizations is a comprehensive resource for designing and implementing effective performance management and measurement systems in public and nonprofit organizations. The ideas, tools, and processes in this vital resource are designed to help organizations develop measurement systems to support such effective management approaches as strategic management, results-based budgeting, performance management, process improvement, performance contracting, and much more. The book will help readers identify outcomes and other performance criteria to be measured, tie measures to goals and objectives, define and evaluate the worth of desired performance measures, and analyze, process, report, and utilize data effectively. Includes significant updates that offer a more integrated approach to performance management and measurement Offers a detailed framework and instructions for developing and implementing performance management systems Shows how to apply the most effective performance management principles Reveals how to overcome the barriers to effective performance management Managing and Measuring Performance in Public and Nonprofit Organizations identifies common methodological and managerial problems that often confront managers in developing performance measurement systems, and presents a number of targeted strategies for the successful implementation of such systems in public and nonprofit organizations. This must-have resource will help leaders reach their organizational goals and objectives.

This exciting and innovative book will find its audience in researchers and scholars at many levels of academe in the fields of entrepreneurship and strategic management, organizational theory and accounting, and finance.

As performance management becomes better integrated into businesses, attitudes and approaches to it are evolving. Through case studies and detailed practice examples from leading international organizations, this text addresses the increasing demand for managers in all sectors to manage and measure staff performance.