ABSTRACT
Performance measurement is the selection and use of quantitative or qualitative data to provide information about the quality and performance of activities, systems, individuals, groups and organizations and to determine progress towards and achievement of objectives. It is a widely accepted concept in business where it is primarily associated with financial criteria such as return on investment (ROI). Since the 1980s, financial measures of performance have been criticized as historical in nature, offering little guidance for future performance or improvement. They are seen to encourage a short term view that lacks strategic focus, does not take into account the specific needs or expectations of clients or customers and is insensitive to the external context. Such concerns were addressed in the balanced scorecard approach (Kaplan and Norton, 1992), which proposed the use of customer perception, internal business process and learning and growth measures in addition to financial criteria. Another extension of the criteria traditionally used to measure organizational success is proposed in the triple bottom line (Elkington, 1994), which includes social and environmental criteria as well as economic performance measures.
