The performance measurement revolution: why now and what next?

Article Title: The Performance Measurement Revolution: Why Now and What Next by Andy Neely


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III. SUMMARY (100-200 words)

The Performance Measurement Revolution: Why Now and What Next is an article by Andy Neely from the University of Cambridge, Cambridge, UK. The article provides an insight into effective performance measurement strategies used by modern organizations. The article was written in 1999; it talks about the evolutionary stages that the performance measurement strategies have passed in the ever-changing business environment (Neely 1999). The business measurement agenda is heavily discussed in details at various professional conferences to share the findings concerning the issue and its influence on the role of tomorrow companies.

The article also discusses the role of politics in influencing various policies that, in turn, contribute to the results of a performance measurement review. According to Neely (1998), many modern organizations use performance measurements as integral parts of their controls and planning issues (Andersen Consulting 1993). Proper performance measurement heavily relies on the employee management, as well as talent tapping and general growth. It is important to know that the performance measurement largely depends on the motivation of the staff in the organization.


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The article uses the terminologies of performance measurement and review on more than one occasion. Lawrence and Lorsch (1967) also discuss performance management in their work as a way of managing human resources of organizations effectively. Research is repeatedly used in the article, as well; the term means various ways, using which the researcher is able to obtain required data and make relevant and effective conclusions.


A number of authors have discussed various shortcomings of the performance measurement strategies in their organizations. The factors that lead to errors, among other things, include the lack of strategic focus and the failure to provide quality data, or the encouragement of the managers to minimize the variance from the set standards instead of seeking to increase it continually.

Some managers are reported to suffer from the problem of data overload; in turn, this issue affects their level of performance and causes generation of redundant information (Lawrence & Lorsch 1967). This irrelevant information is a hindrance to obtaining the set out goals in terms of information. The time spent on irrelevant areas reduces the time allocated for the desire to attain the targeted level of performance; instead, a more precise measure ought to be put in place in order to implement the organizational goals.


At the end of the analysis, it appears that, in many companies, the main problem with the performance measurements is the lack of integration. The lack of integration of facts largely affects the reliability of the data acquired, which are to be used in the result determination. The lack of alignment with the business process is yet a recurrent problem that the measurement process faces in the effort to bridge the gap in the findings.

The poor definition of the measurement process is yet another issue, with which organizations have to deal. To some extent, however, the problems are recurrent in the business cycle and, in the long run, end up leaving a drastic impact on the way, in which the performance measurement and review can be carried out as discussed in the article.

The mere fact that the article discusses common errors that arise out in the business performance measurement processes brings a lot of familiarity with the modern business environment. It is, however, left to be researched whether they can shift to adopt some new approaches in dealing with the cases of new performance measurement criteria.

The book by Parasuraman, Zeithmal, and Berry (1990) is instrumental in throwing light at various emerging trends, which have been blamed for dragging the performance management in organizations. I draw my particular observation from the fact that the authors try to provide solutions to the discussed issues that prevent an effective development of the business processes. The approach developed for the General Electricals of launching a performance measurement project as suggested by Meyer and Gupta (1994, p.348) is one of the core solutions to eliminate the error gaps in the companys performance measurement process.


The article described the performance measurement revolution as rather a fact and not fiction as it may be considered in other areas and processes. The measurement as suggested by the new business cycle compares up to five hours of every working day. Consequently, it is much easier to incorporate the results in the modern working environment whereby the performance level can be determined by the established comparison between various working departments and their measured efficiency.

In my working practice, the application of the suggested measurement management strategy is equally possible in putting up and coordinating the processes in order to meet the needed level of business and increase outcome. The performance measurement, as discussed in the article, can be done with the help of determining the customer satisfaction level. The higher the rate of the customer satisfaction is, the better the performance level of the business model in place. In the modern business, any variations on this issue can be referred to as the efforts of some specific companies to automate the data on the questionnaire. This way, the businesses end up with very biased data that may not provide a clear picture on the ground (Parasuraman, Zeithmal & Berry 1990). Reliance on the provisional data is important in order to achieve the aim and vision of an organization at any time.

According to the article, the use of IT is not only limited to the capture and interpretation of data. Among the other things, it involves the publication of the customer service report. This system can be applied in many working places in order to boost the quality of service provided to the customers on a daily basis (Andersen Consulting 1993). The information technology is a reliable way, in which organizations can attain the needed level of the customer relation, as well as performance measurement and management of the employees level of output.


Additional data provided by the University of Michigan showed a positive correlation between customer satisfaction and the level of financial performance of the company. It also goes that, in the modern business performance evaluation, proper measures are of crucial importance in order to improve the level of customer satisfaction so as to attain the desired financial performance of the business.

It is, however, exciting to realize that the level of investment determines the level of outcome that is expected from a company. In order to ensure a higher level of measurable returns, it is important that the organization increases the level of financial investments into running the business. Coordination of the organizational activities heavily relies on the degree of financial investment that has been put in place.

The evolution of the companies performance is facilitated by some issues such as the changing nature or work, the power that IT possesses, the changing organizational roles and also the improvement initiatives that all businesses may require in order to attain a higher level of performance measurement (Andersen Consulting 1993). Therefore, it is important that the relevant performance measurement strategies are put in place with the aim to curb the increasing deviation from the performance standard trends.

It is yet desirable that the economic status of the parent countries largely affects the performance level of many companies. The policies that are put in places from the organizational levels up to the national policies create an influence the performance status of an organization.

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