Performance measures
« What gets measured gets done. »
Performance measures quantify how well the activities within a process or the outputs of a process achieve a specified goal.
Performance measures must be quantified and controllable. They are quality-based, time-based or cost-based.
Quality-based measures assess how well an organization's products or services meet customer needs.
Time-based measures focus on how quickly the organization can respond to outside influences.
Cost-based measures cover the financial side of performance.
Focusing attention simultaneously on quality, time and cost can optimize performance for an entire process and ultimately an entire organization.
Quality
Customer satisfaction
Customer retention
Customer complaints
Product returns
Defect rates
Image surveys
Client references
Employee satisfaction
Number of employee suggestions
Productivity
Time
Cycle time
Delivery speed flexibility
Response time to customer requests
Time to reach person called
Answer speed for phone calls
Time to respond to inquiries
New product development time
Number of organizational levels
Span of control
Suggestions implemented
Cost
Sales growth
Revenue growth
Market share and position
Revenue % from new products
Labor costs
Salary and benefits costs
Training costs
Cost of raw materials
Net profit margin
Gross profit margin
Operating profit margin
Operating cash flow margin
Receivables turnover
Current ratio
Quick ratio
Return on assets
Return on equity
Asset turnover
Long-term debt to capital ratio
Capital costs