Measures are used to evaluate the performance of a business, or of segments of a business. Financial measures, like the financial ratios and ratio analysis discussed in Chapter 12, are based on financial results. On the other hand, performance measures often are applied to data that is not strictly financial in nature, such as customer satisfaction.
By using quality and time measures to uncover exceptions to standard procedures, tracking performance in carefully selected key areas can identify both inefficiencies and exceptional results. These select measures are benchmarks that will be used to compare or measure the actual results. The benchmarks act as the scorecard for management. The scorecard can be an actual report that uses the selected measures, or easy-to-find comparisons in standard period report packets such as quarterly reviews and annual reports.
Most of the datamodels discussed in this book contain data that can be used to measure the performance of a company or organization. But you may also need to use additional tables or external sources, like Excel spreadsheets, to hold the additional information needed to measure performance.
There are endless variations of measure types, so your goal should be to select the measures that match your industry and your specific needs. Some measures are required for specific reasons for specific purposes. A specific custom measurement that is unique to the individual company may be advantageous. ...