The opportunity for improvement as a result of a balanced measurement process can be difficult to determine.  We know three things for sure:

1. There are always better ways to do things
2. If you do not measure how you are doing you will never know, and
3. If you never know, you will lose the opportunity to improve.

 “Measurement is the heart of the improvement process.  If something can not be measured, it cannot be improved.” Tom Peters

 Key Result Areas for Performance Measurement

• Quality
• Effectiveness
• Efficiency
• Productivity
• Safety
• Quality of working life
• Innovation
• Financial Performance

Governing Principles include:

•          Measurement is not an end in itself

•          What you measure is what you get

•          Measurement systems fail if they lack acceptance

•          Measurement is a limited substitute for direct observation

•          Users of measurement data must understand its limitations

•          Most organizations’ performance can be measured

Criteria for Successful Performance Indicators

1. Easy to calculate
2. Presently available
3. Directly related to process improvement
4. Directly related to a process problem area
5. Produced on a timely basis
6. Used to diagnose trouble spots
7. Sensitive to change
8. Indicative to the action required
9. Dependent upon known control variables
10. Well defined