Performance Metrices Essay Example

Introduction

A performance metric is a measure of an organization's activities and performance. Performance metrics should support a range of stakeholder needs from customers,shareholders to employees. While traditionally many metrics are financed based, inwardly focusing on the performance of the organization, metrics may also focus on the performance against customer requirements and value. In project management, performance metrics are used to assess the health of the project and consist of the measuring of six criteria: time, cost, resources, scope, quality, and actions.
Total Quality Management guidelines that indicate that performance metrics should lead to a quantitative assessment of gains in:
Customer Satisfaction Organizational Performance Workforce Excellence
The key elements of the performance metrics to these guidelines should address:
Alignment with Organizational Mission Cost Reduction and/or Avoidance Meeting DOE Requirements
Quality of Product Cycle Time Reduction Meeting Commitments
Timely Delivery Customer Satisfaction

The Process

The first step in developing performance metrics is to involve the people who are responsible for the work to be measured because they are the most knowledgeable about the work. Once these people are identified and involved, it is necessary to:
Identify critical work processes and customer requirements.
Identify critical results desired and align them to customer requirements.
Develop measurements for the critical work processes or critical results.
Establish performance goals, standards, or benchmarks.
The establishment of performance goals can best be specified when they are defined within three primary levels:
Objectives: Broad, general areas of review. These generally reflect the end goals based on the mission of a function.
Criteria: Specific areas of accomplishment that satisfy major divisions of responsibility within a function.
Measures: Metrics designed to drive improvement and