Chapter 2: Why measure performance?
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Reasons for measuring performance have changed and become more complex since managers first began measuring how long each action or process took. This chapter explains why organisations measure performance and explains what a good performance measurement and management system will do. The key reasons are discussed in detail. The first purpose is to ensure all actions have a clear link to strategy and that all employees understand how they contribute to achieving the strategy. The second is to help establish the organisation’s current position. The third is to communicate direction. The fourth is to facilitate learning which enables improvement and sustainability. The fifth is to influence behaviour, to encourage people to behave in a way that meets the organisation’s goals and values. The sixth is to stimulate action in the areas which will provide the greatest return.

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