Why Measure Performance?

0. If it cannot be measured, it cannot be improved.

1. If we don't know how well we are doing, we are probably not doing well!

2. What is inspected is respected.

3. Not knowing what to focus on, we focus on everything ==> nothing.

4. If we see patterns/trends, we can anticipate and control the future.

5. We can drill down from poor performance areas to understand their causes.

6. Measuring performance makes us understand our business activities better as a result of benchmarking and goal-setting.

What to Measure?

A. Appropriateness: Whether the right things are done.

B. Quality: How well things are done.

C. Productivity: How fast things are done.

D. Utilization: How close to their maximum capacity things are used.

Ideal: The right things are done correctly, quickly, and frequently!