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Performance measurement

Performance measurement quantifies or otherwise assesses results and drivers of results against the organisation’s objectives. Useful measures have clear definitions, appropriate timing, reliable data and relevant comparators. Balance financial outcomes with customer, process, people and other drivers and consider controllability and unintended behaviour. Measurement supplies evidence; performance management additionally interprets it, makes decisions and takes action. More indicators do not necessarily produce better insight.

Worked example

A delivery business monitors profit, on-time delivery, complaints and staff safety together, comparing like service conditions and investigating conflicting signals.

Common mistake

A measure is not automatically useful because it is easy to count or appears in a dashboard.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA APM Direct September 2026–June 2027
ACCA FR Supporting September 2026–June 2027
ACCA MA Direct September 2026–June 2027
ACCA PM Direct September 2026–June 2027
FIA FMA Direct September 2026–June 2027