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As we all know Performance measurement enhances management decision making. It allows control of the inputs, outputs and outcomes of performance. Data generated by performance measurement can be used to determine program efficiency and effectiveness and to make decisions about what services to continue, start and stop. We shall now discuss some of the important benefits of Performance Measurement System.
Reasons for a Performance Measurement Systems
- It improves the bottom line by reducing process cost and improving productivity and mission effectiveness.
- A performance measurement system such as the Balanced Scorecard allows an agency to align its strategic activities to the strategic plan. It permits — often for the first time — real deployment and implementation of the strategy on a continuous basis. With it, an agency can get feedback needed to guide the planning efforts. Without it, an agency is ‘flying blind’.
- Measurement of process efficiency provides a rational basis for selecting what business process improvements to make first.
- It allows managers to identify best practices in an organization and expand their usage elsewhere. 5. The visibility provided by a measurement system supports better and faster budget decisions and control of processes in the organization. This means it can reduce risk.
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