Preformance Measurment - Essay Example

Running Head: Performance Measurement Performance Measurement Performance Measurement Introduction This paper will first concisely describe three major performance measurement frameworks. Next, there is the section of comparative analysis followed by evaluation of the importance of performance measurement within a project. The paper will culminate at a viable conclusion. Performance Measurement Frameworks Balanced Scorecard In the method of balanced scorecard, a number of fiscal and non-fiscal measures are identified and targets are attached to them.

In the course of reviewing and analyzing this information, it is feasible to ascertain whether the current performance can meet expectations according to the targets set or not. Balanced scorecard deals with control activities and strategic planning. It comprises of the following four steps: 1. Translation of vision into practical operational goals 2. Communication of vision and linkage to individual professional performance 3. Index setting and business planning 4. Education, feedback, and subsequent strategic adjustment (Kaplan and Norton, 1993) Performance Prism The performance prism framework can be regarded as a second generation management and performance measurement system.

It is extremely supple and viable, and it synchronizes the stakeholders’ needs with the organization’s needs. Its approach is twofold: process based and strategy based. It involves evaluation of the expectations and functions of the communities, regulators, suppliers, employees, intermediaries, customers, and investors regarding the organization in a systematic and analytical way. (Neely et al, 2002) Team Performance Measurement (TPM) Team performance measurement is a system of performance measurement that evolved towards the end of the 1990s.

It is designed mainly to address the issues that are faced by team leaders, facilitators, and managers in the course of team management. It consists of seven steps: 1. Review existing organizational measures 2. Identify team measurement points 3. Identify individual results which support the team 4. Weight the results 5. Create measures for each result 6. Create performance standard 7. Create a tracking system (Zigonperf.com, n.d.; Zigon, 1999) Comparative Analysis Comparing the structures of the performance measurements discussed so far, it can be concluded that the balanced scorecard is a four-step method, the TPM is a seven-step method, and the performance prism is a highly flexible and adaptable framework with no hard and fast step wise working.

Balanced scorecard mainly addresses the needs of the managers, while TPM addresses the needs of the team leaders, facilitators, and managers. But performance prism has a much wider utilization since it involves evaluation and analysis of the needs of the various stakeholders of the organization like investors, customers, suppliers, employees, intermediaries, etc. Balanced scorecard design evolved in the early 1990s, while TPM was structured in the wake of the twenty first century. However, performance prism is one of the latest performance measurements available today.

Both balanced scorecard and TPM are focused on the issues that are internal to the organizations and centered on individual performance. However, performance prism covers a wide spectrum of issues and considerations that are related to both the internal and external settings of the organization. Comparing the three performance measurements, it appears to be so that the framework of performance prism is very contextual with respect to the contemporary global business environment, while balanced scorecard is still rather popular among the corporate policy makers.

Importance of Performance Measurement within a Project Implementation and execution of a project can be based on a project life cycle that will help in understanding and analyzing the progress of the project through each step (Chapman and Ward, 2003). In doing so, performance measurement becomes not only an important but also an indispensable issue. First, it helps to analyze the actual performance, potential performance, and expected performance. If performance measurement is done before the completion of the project (for example, when the project is 30% or 60% complete), possible underperformance issues can be diagnosed in time and plans for subsequent damage control can be chalked out and implemented.

Performance measurement will further help to identify and reward the high performance individuals within the project. Likewise, the low performance individuals can be warned or removed from the project work and new experts can be invited to join the project in proper time. In sum, performance measurement is very important in terms of project implementation, execution, and control. Conclusion Performance measurement is increasingly becoming a crucial consideration for the organizations work in today’s complicating competitive environment.

With the lapse of time, innovative performance measurement frameworks like performance prism are expected to address the several intra and extra organizational issues in almost one go. References Chapman, C. and Ward, S. (2003). Project Risk Management: Processes, Techniques and Insights, 2nd Ed., Hoboken: Wiley and Sons. Kplan, R.S. and Norton, D.P. (1996). The Balanced Scorecard: Translating Strategy into Action. Boston: Harvard Business Press. Neely, A.D. Adams, C., and Kennerley, M. (2002).

The Performance Prism: The Scorecard for Measuring and Managing Business Success. Upper Saddle River: Financial Times/Prentice Hall. Zigon, J. (1999). How to Measure Team Performance. Wallingford: Zigon Performance Group. Zigonperf.com (n.d.) How To Measure Team Performance. Retrieved June 7, 2011, from http://www.zigonperf.com/store/jztp.html.