Measuring Performance
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Measuring Performance - Harvard Business School Press
accounting.
Measuring Performance: The Basics
An Overview of Performance Measurement
Do you jog, play basketball, ride a bike, or participate in some other team or individual sport? If so, you likely keep track of your performance, even if it’s as simple as I ran that eight-mile loop faster than ever
or I scored four more points during this game than I did in the last one.
Why do you keep score in these ways? Like many people, you’re probably performance-driven or achievement-oriented—or maybe just naturally competitive. You want to know whether your performance is improving or declining and how your latest achievement compares with your personal best. You crave feedback on how you’re doing.
In much the same way, organizations want—and need—to track the changes in their overall performance. And the divisions, units, teams, and individuals within them engage in similar scorekeeping.
Let’s take a closer look at this desire to measure business performance.
Why appraise business performance?
Organizations measure their performance for numerous reasons. Here are just a