Process performance measurement

Process Performance Measurement

Process performance measurement is the process of determining how the company is operating its business in respect to how the employees are fulfilling their duties to satisfy the market. The top management is primarily responsible for carrying it out in order to maintain the business's relevance in the market and deter employee laxity. Process performance can be measured using a variety of techniques based on enterprise economic metrics. These techniques include added value measurement, financial and non-financial indicators, and others that, when put together, provide the company's total economic performance in relation to the established targets and long-term growth strategy. The economic indicators are the most commonly used as they involve the various methods and metrics of performance evaluation on each employee to what he or she is contributing to the financial health of the organization. Within this approach, there are various measures that can be employed with the most common one being the Balanced Scoreboard method (BSC). Boris & Kopczynski, (2013) argues that this method is used to analyze the performance of the organization based on customer treatment and whether their demands are met. Also, the internal business processes, development and growth of the organization are evaluated with the respect of the initial vision and strategy of the organization.

Main Methods of Process Performance Measurement

1. Financial Measure

Additionally, this method of measuring process performance is guided by four main methods which are tailored to ensure that all the employees in an organization work in harmony to reach the set targets and team ethics. The financial measure looks at how the organization is performing regarding the usage of its resources established by the shareholders. By using this method, the work of each employee is well monitored, and thus any person who is not functioning to meet that end can be thinned out.

2. Internal Business Measure

The second method involves an internal business measure that looks at how the operations get conducted and whether they are in harmony with the vision and target of the organization. Through this method, all of the employees can be monitored on which kind of the work they are doing and the relevance of that work to ensure that the business of the organization runs smoothly.

3. Innovation and Development Test

The third method to measure the process performance is the innovation and development test. This process tries to look at how the team is positioning itself towards the future and also the emerging technology. By measuring the process performance using this method, education and knowledge skills of an individual are gauged. It also looks at how relevant education and skills are towards the business (Upadhaya & Munir, 2014). It ensures that the organization is in a position to advance regarding innovation and growth. Advancement in the area of innovation is a critical factor in ensuring that the organization competes with its competitors more favorably.

4. Customer Measure

The other key method to measure the process performance is the customer measure. Under this approach, customers are given the preference and it takes into consideration how they are served. All the employees are evaluated on how they meet the best level of customer satisfaction. The satisfaction is monitored regarding timely delivery of the products or services, the handling of the client concerning the language used and also the way the person appears towards the customer. All of these factors are crucial in determining whether the customers will be retained. Since the objective of any organization is to attract as many customers as possible, the process performance can thus be measured on how best the business is meeting the requirements of its clients.

References

Upadhaya, B., Munir, R., & Blount, Y. (2014). Association between Performance Measurement Systems and Organizational Effectiveness. International Journal of Operations & Production Management

Boris, E. T., & Kopczynski Winkler, M. (2013). The Emergence of Performance Measurement as a Complement to Evaluation Among U.S. Foundations. New Directions For Evaluation