JUNE 12 P5

The aim of performance management is to get an organisation to perform better. However, they first need to work out what they mean by good performance (they might go back to their mission and stakeholders to find that out, and also their generic strategies). Knowing what's meant by good performance allows performance metrics to be devised to push the organisatoin and its people in the right direction. Some organisation see as part of good performance excellent customer service. If so they must measure that. Some organisations do not think customer service is a high priority (eg some cut price airlines) so they wouldn't try to measure that, but they would measure other factors such as how many scratch cards are sold per flight to raise extra revenue.

Dear Mr Gromit With regard to the performance measurement/management please advise: if a company alter its normal budgeting approach into a beyond budgeting approach, will it be the change of performance measurement or performance management? Many thanks. Hanhvn

It might be a performance management I think. Performance measurement is how to measure the key success factors and some problems countered when measure the factors. So change budgeting approach should be performance management, it did not involve the measure factors.

Could be both. You are changing how performance is measured (not to a preset budget) and that will presumable alter performance. I don't think it's worth worrying about.

Thank you Mr Gromit & 310zcx.