What are performance management metrics?
performance management metrics are statistics intended to quantify selected aspects of the organization's performance so that the management can better monitor, control and take corrective measures. The basic mantra is you can't manage what you measure . Software for business management is widely available to help with a routine measurement task. Historically, the metrics of performance focused on the interests of owners and thus the financial performance of the organization. In the last two decades, this narrow focus has spread to include non -financial metrics.
The financial performance is monitored using the battery of individual line items reported in three main financial statements and loss, balance sheet and cash flow reports. These line items include sale, goods sold, tax costs, tax profit, total assets, capital expenditures and cash flow from operations. The financial lines items are used to calculate Litana financial rats.
Financial analysis is standardA topic applied to many university accounting and administrative courses, as well as the basic technique for investment analysis. The key areas to which the financial conditions include sales profit, cost efficiency, strength of flow, the structure of the capital used and the profitability of this capital. In addition to management, shareholders, the owners of the company, are the main audience of these metrics.
In the framework of private sector companies, they nominally focused on maximizing profits, the final goal of the financial metrics is to increase the value of the company and hence the wealth of shareholders. This goal ultimately depends on two key metrics: the size of the company's capital base and the level of profitability obtained by the company in this capital. Many and diverse financial conditions help to understand these two key values.
over 80 years.Kona, which exceeded financial and dealt with all parties involved. Employees, customers and the public began to require increased transparency in organizations. The way they believed would make them better assess how the organizations influenced them individually and collectively through the impact of community assets and the environment.
To help meet this need, a balanced Scorecard has been developed as a performance management tool at the beginning of the 90's DRS. Robert Kaplan and David Norton. In addition to financial performance, Scorecard balanced metrics cover three other wide topics: customer, business process and learning and growth. It is a complex framework to help organizations in the examination of performance, harmonize activities with visions and strategies, and what is important to improve communication with all parties involved. As a tnázev, it means that a balanced Scorecard provides a more balanced set of performance metrics.
performance management metrics are used by organizations in all sectors of economiesY-southern, government and non-profit. Given that the visions and objectives of organizations are very different in these sectors, also perform the performance management metrics they choose. The selection of the appropriate metrics always includes four basic steps: to identify the important problems that deserve measurements, develop relevant metrics, set suitable goals and monitor and control performance towards the targets.