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Question

Not sure I am understanding this question. What exactly are performance metrics and what role, if any, do they play in the performance management process?

Answer 1

Performance metrics should be constructed to encourage performance improvement, effectiveness, efficiency, and appropriate levels of internal controls. They should incorporate "best practices" related to the performance being measured and cost/risk/benefit analysis, where appropriate.

Performance metrics should lead to a quantitative assessment of gains in:

Customer Satisfaction

Organizational Performance

Workforce Excellence

The key elements of the performance metrics to these guidelines should address:

Alignment with Organizational Mission

Cost Reduction and/or Avoidance

Meeting Client / Customer Requirements

Quality of Product

Cycle Time Reduction

Meeting Commitments

Timely Delivery

Customer Satisfaction