The specific performances to be measured will then relate to the specific company involved. When performance is measured, there is also a greater clarity of mission. This can then be modified according to the findings.
A clearly defined mission statement is then at the core of such a performance measurement system. Performance is measured against the goals set at the inception of the company. Stakeholders both inside and outside of the company are used for reviewing performances. Operational and strategic performance measures are developed after defining and implementing the mission statement.
Performance measurements can then occur at both the operational and strategic levels. At the operational level, managers use the results to plan and control the operational level of the business, while strategic performance measures are used to acquire a wider picture of the issues involved and the performance of the company.
Another advantage of performance measurement systems relate to everybody associated with the company, including the general public and customers. Company programs are related to the public in a way that is clearly understandable by means of performance measurement systems.
Costs also form part of a company's performance measurement. This includes evaluating the efficiency, effectiveness and equity of elements within the company. The cost would then be not...
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