Why you should measure the performance of work processes

Why measure performance if you are making money?

Talking to others in various industries it came as a surprise to me that there are many managers who do not have any form of measuring running on their work processes. As long as the cash rolls in the organization are perceived to be performing.

This is a misconception that can backfire later on when things start going wrong. There are specific reasons for KPI measurements in an organization and it should always be used for the benefits it can deliver.

Things are measured for various purposes as could be seen in our post "Work Performance Measures You can Start Today". Everything in an organization can be measured as long as the measurement feedback will create an opportunity for improvement.

What are the reasons for performance management measurement?

That is the main reason for performance measurement in the workplace. To improve your current results by means of analyzing the actual achievements against the targeted goals. Above this we also measure:

  • Get a better understanding of how our processes are performing under various conditions.
  • See how the human factor affects processes.
  • Provide information so that we can set an acceptable standard of operation.
  • Collect data that can assist in later decision making processes.
  • Provide data that can assist in measuring your performance against the opposition in the marketplace.
  • Understand how and where our monetary values are created.

How can performance measurement help me?

By understanding our processes, the measurements we apply will assist in the detection of anomalies immediately should any change occur. Your measurement frequency will determine the reaction time you have to solve problems. 

For example: After measuring Machine A for two months we could establish an average standard output of 180 Units/Hour. Without going too deep into Time and Method Study applications it is still possible for you to detect if Machine A suddenly drops to 120Units/Hour. It is logical that something happened and needs to get attended to immediately or losses will occur.

On the other hand if the average standard changes to 220Units/Hour we must also determine what influenced the increase in output. The result might be something that can be applied to all other machines and will provide for a significant productivity increase.

Humans have the greatest ability to affect work processes through their behavior and it is therefore very important to measure your employees continuously.

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