Performance measurement is not just undertaken as a budget or administrative exercise. To obtain the full value that performance measurement is capable if providing, it must be part of an organization’s culture and everyday management practices. Performance measurement is not the only solution, however, it is a useful tool for organizations to use in order to ensure limited funds are being used effectively to deliver the services required by related client groups.
Performance measurement is a means of assessing progress against stated goals and objectives in a way that is unbiased and quantifiable. A combination of financial and nonfinancial indicators is used to measure program(s) effectiveness and efficiency. These indicators can include cost factors; customer-focused factors such as quality; timeliness; and satisfaction/complaints.