Performance measurement and the improvement cycle Traditionally, performance measures and indicators have been derived only from cost-accounting information, often based on outdated and arbitrary principles. These provide little motivation to support attempts to improve performance and, in some cases, actually inhibit continuous improvement because they are unable to map process performance. In the organization that is to succeed over the long term, performance must begin to be measured by the improvements seen by the customer. In the cycle of never-ending improvement, measurement plays an important role in:
• tracking progress against organizational goals
• identifying opportunities for improvement
• comparing performance against internal standards
• comparing performance against external standards.