Performance Measurement Training

Managing performance involves measuring and interpreting operational data.

Managing performance involves measuring resources used, work produced and determining if the outcomes (typically products or services) meet expectations so that rewards (or punishments) can be allocated. Training managers on how to conduct performance measurement activities involves providing opportunities to write performance objectives, utilize tools and calculate results. By training managers effectively, they access more complete information and make better decisions. Evaluating performance accurately enables managers to capitalize on opportunities and avoid or minimize threats.

Function

Strategic planning identifies how an organization achieves its mission and what steps are required to achieve those goals. Steps include reviewing goals (which typically span several years), identifying focus areas, and reviewing data about the business is performing. Operational data such as sales results, customer satisfaction and financial reports provide performance measurement information to managers who make decisions about rewarding employees for their work. Training managers to utilize this involves defining the planning process and establishing roles and responsibilities as well as time commitments. Managers learn to ask themselves question such as, what if we did not exist or what if we doubled production.

Benefits

Performance measurement training ensures all managers interpret results using the same set of criteria. Performance measurement evaluates how well an organization is achieving its mission, not the effectiveness of specific strategies. Upon training completion, managers can define terms such as input, output, efficiency, quality, outcome and data. By establishing that performance indicators are quantifiable and measurable as well as relevant, timely and comparable, managers learn to produce reliable performance measurement evaluations. Consistently high employee performance improves products and services, accountability and long-term profits.

Content

Instructional topics covered in performance measurement training include using relative value approaches (for example, ensuring 80 percent of employees work with customers), interpreting balanced scorecards (which report financial measures as well as customer satisfaction, internal processes and employee development), competency models (classifying employees by the skills, knowledge and experience observed on the job) and benchmarking (identifying other company's data and comparing performance against leaders.)

Learning Objectives

Upon completion of performance measurement training, participants typically should be able to identify where to focus efforts on improving performance, describe how to select organizational results to measure and interpret measurement data. Assessments such as final exams or responding to case study examples evaluate a participant's ability to measure performance effectively.

Expert Insight

Including role-playing exercises and other simulated interactions helps managers prepare to make difficult performance measurement decisions. Training prepares managers to interpret complex data (such as service quality indicators that show how accurately and how timely service is provided) to make business decisions. Using accurate performance measurement data (such as employee retention or product failure rates) enables managers to improve business results.

References

• Free Management Library: Performance Measurement: Guidelines, Myths and Examples