Performance measurement is the process of collecting, analyzing and/or communicating information about the performance of an individual, group, organization, system or component.
The definition of performance measurement is based on the assumption that performance is measured.
Moulin defines this idea with a forward-looking organizational approach: "the process of evaluating the quality of management of organizations and the value they bring to customers and other stakeholders." Neely et al. Use a more operational retrospective approach: "the process of measuring the effectiveness and efficiency of past actions". In 2007, the Office of the Prime Minister of the United States defined it using a more evaluative approach: "Performance measurement measures the metrics by which programs, investments, and acquisitions are achieving expected results." Federal Enterprise Architecture Performance Model, 2005.
There is consensus on the definition or use of performance indicators, in addition to simply agreeing on their relationship to some kind of performance measurement. In light of this, management frameworks have emerged that include performance indicators and often restrict the methods of selection and use of appropriate metrics for this application. The most common frames of this type include:
Balanced Scorecard: Used by organizations to manage the implementation of corporate policies Key Performance Indicators: A method of selecting key/critical performance indicators, usually within an organizational context.
Performance standards often include a list of predefined standard performance indicators. For example, the EN 15341 standard defines 71 performance indicators, 21 of which are technical indicators, or those established in the 1999 directive of the Federal Government of the United States of America – National Association for Government Reinvestment, United States; Compensatory Measures: Best Practices in Performance Management, Aug 1999.
Defining performance indicators or the methods by which they can be selected is also a popular activity for academics; For example, the list of railway infrastructure indicators is provided by Steinström et al., et Mandibil et al.
For example, there are also current scholarly articles providing critical reviews for measuring performance in specific areas. Itner’s comments on non-financial reporting from business organizations or Boris et al. On the use of performance measurement in non-profit organizations.