IT Enabled Cost Service Performance

Measurement

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 Content
• Meaning - Performance Measurement
• Meaning – Evaluation
• Evaluation VS. Performance Measurement
• Benefits of Performance Measurement

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 Meaning - Performance Measurement

• Performance measurement is better thought of as an overall

management system involving prevention and detection
aimed at achieving conformance of the work product or
service to your customer's requirements.

• it is concerned with process optimization through increased

efficiency and effectiveness of the process or product.

• Performance measurement is primarily managing outcome,

and one of its main purposes is to reduce or eliminate overall
variation in the work product or process.

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 Meaning - Evaluation
• Serves accountability needs and interests, helping everyone
involved in performance focus on what matters and steer their
efforts toward valuable results.

• Helps assure clients and their constituents that their investors

understand the potential benefit from investments, not
only increasing investors commitment and buy-in, but
helping investors to make wise decisions about where and
how to spend their time and money.

• Addresses quality improvement and assurance purposes

• Define as formalized and systematic reflection. Reflection is
looking back; taking a pause in the action to ask how things are
going.
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 Evaluation VS. Performance
Measurement
 Evaluation Focuses on an intervention. Measurement Focuses
on result.

 Evaluation is a point in time. Measurement is through time.

 Evaluation looks for the story. Performance measurement

looks for the signals.

 Evaluation is the systematic assessment of the worth or merit

of some object

 Evaluation is the systematic acquisition and assessment of

information to provide useful
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feedback about some object 5
MS 213
 Benefits of Performance Measurement

 To identify whether we are meeting customer

requirements. How do we know that we are providing
the services/products that our customers require?
 To help us understand our processes. To confirm what
we know or reveal what we don't know. Do we know
where the problems are?

 To ensure decisions are based on fact, not on emotion.

Are our decisions based upon well documented facts
and figures or on intuition and gut feelings?

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 Benefits of Performance Measurement

 To show where improvements need to be made. Where

can we do better? How can we improve?
 To show if improvements actually happened. Do we
have a clear picture?

 To reveal problems that bias, emotion, and longevity

cover up. If we have been doing our job for a long time
without measurements, we might assume incorrectly
that things are going well

 To identify whether suppliers are meeting our

requirements. Do our suppliers know if our
requirements are being met?
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