ABSTRACT
This chapter discusses the sources of measures, the types of measures typically found, and the use of measures for maximum effect. The performance of employees is evaluated by measures. Customer satisfaction and continuous operational improvement, by definition, require measurement. Sometimes measurement definitions can be captured in the very wording of the strategic objectives created in the strategic plan. A good planning group will generally create their own measures simply by being specific about their objectives. The first major distinction is that organizations use both level and trend measures. Trend measures are the most common because they are the easiest to create and it is now common to talk about continuous improvement in everything. Level measurement is more difficult but is much more useful for many purposes. Level measurement requires some form of bench-marking, preferably outside the organization. The most popular measures of performance are revenue, costs, and profit.
