THE BALANCED SCORECARD
Management and measurement are inseparable. Things that get measured get done, or, to change the emphasis subtly and probably more accurately, people perform as they are measured. In other words, measurement isn’t some passive eye taking it all in and reporting back to the brain; it is an active, dynamic management tool as well as a feedback mechanism. It is also, from my experience in engineering, manufacturing, software, marketing and PR, one of the least well understood, neglected and, not uncommonly, misused aspects of management.
- Measurement – the action of measuring something; ascertaining the size, amount, or degree of something by using an instrument or device; assessing the importance, effect, or value of something.
- Evaluation – the making of a judgement about the amount, number, or value of something.
- Metric – a system or standard of measurement; (in business) a set of figures or statistics that measure results.
You may have heard the phrase ‘measurement and evaluation’ bandied around; well it appears that ‘evaluation’ doesn’t really add any meaning that ‘measurement’ doesn’t convey alone. Rather than consider it redundant however, I like to think that ‘evaluation’ takes the qualitative role, leaving ‘measurement’ to focus on the quantitative aspects. Measurement and evaluation – quantitative and qualitative.
Business performance management (BPM) requires the judicious selection and application of a number of metrics. ...