6. Metrics and Frameworks for Assessing Performance
Importance of Metrics and Measurement
Most of us have heard some version of the standard performance measurement slogans: “What gets measured gets done”; “If you don’t measure results, you can’t tell success from failure”; “If you can’t recognize success, you can’t learn from it; if you can’t recognize failure, you can’t correct it”; “If you can’t measure it, you can neither manage it nor improve it.” Although these are slogans, or clichés, they underscore the reality of managing a business and the importance of measuring performance. This is especially true when managing operations.
Just consider the area of quality management. When a company promises and delivers on quality, there is a good ...