Performance Measurement

… a core concept in Leadership Skills

Concept description

Performance measurement can be defined as the process of collecting, analyzing and/or reporting information regarding the performance of an individual, group, organization, system or component.

Performance measurement estimates the parameters under which programs, investments, and acquisitions are reaching the targeted results.

Examples of performance measurement systems in use today include the Balanced Scorecard developed by Kaplan and Norton at the Harvard Business School. Although the Balanced Scorecard has become very popular, there is no single version of the model that has been universally accepted. The diversity and unique requirements of different enterprises suggest that no one-size-fits-all approach will ever do the job.

Performance measurement is not a new concept. In 1943, the International City Management Association published an article on measuring the performance of municipal activities. During the Kennedy administration, systems analysis processes were introduced to the Department of Defense which fueled interest in performance measurement in the federal government. Other agencies began experimenting in performance measurement when the Johnson administration introduced what they called planning-programming-budgeting system (PPB). Eventually more and more state and local governments began using performance measurement to improve their management and budgeting. The use of performance measurement became a common practice in the 1970s with the introduction of new social programs that needed to be assessed. However, interest in performance measurement did dwindle in the 1980s, as people did not perceive benefits of using performance measurements in making decisions. In the 1990s, performance measurement was reenergized as the demands for holding government entities accountable to public increased. A number of resolutions were passed by associations such as the National Academy for Public Administration, urging government to set goals and measure their performance and in 1993, The Government Performance and Results Act was passed by the federal government requiring their agencies to become involved in strategic planning, goal-setting, and performance measurement.

See also: Performance Reporting.


Drawn from Wikipedia at, accessed 31 December 2015.

Atlas topic and subject

Differing Leadership Challenges and Leadership Styles Motivation and Performance Measurement (core topic) in Leadership Skills.

Page created by: Ian Clark, last modified on 14 April 2017.

Image: From prweb at, accessed 31 December 2015.