Performance Measurement is the process of collecting, analyzing and/or reporting information regarding the performance of an individual, group, organization, system or component. It can involve studying processes/strategies within organizations, or studying engineering processes/parameters/phenomena, to see whether output are in line with what was intended or should have been achieved.
Performance Measurement can also be seen as the process of evaluating how well organisations are managed and the value they deliver for customers and other stakeholders.
Meeting established workplace goals requires employees to perform their job duties efficiently. Without proper oversight, acceptable standards may be ignored, which can lead to mission failure. Managers play an integral role in ensuring employees receive adequate training and supervision. Measuring employee performance is essential to making the most productive business decisions. Knowing how well employees are performing can aid in setting realistic goals and in improving work culture.
read more »For finance problems, read cash flow. Cash flow is the number one business killer. Most businesses have a gap of weeks, if not months, between the raising of an invoice and the customer paying, causing a cash flow black hole - particularly if a major order requires investment in new staff or equipment. Look closely at your invoice/credit control processes, and look at ways of incentivizing customers to pay on time.
Remember, if this isn't a problem now, it might be if your customers start to struggle. Offer better rates for prompt payment and come down heavy on or drop late payers - losing their business, no matter how unpalatable, is better than losing yours. Look into factoring and invoice discounting. Look to hoard cash, you might need it when you least expect it.
In the current climate where the fittest survive, your people are more important than they've ever been. In the scramble for market share, your people need to be Brand Ambassadors so you need to ensure they're trained, capable and motivated. Monitor staff turnover, carry out regular reviews, invest in training, make people feel valued, reward good performance. Conversely, beware of becoming too dependent on key members of staff - they might leave. Counter this by securing them on lengthy notice periods.
Never stop talking to your customers. Know they're happy with your service, know if they're unhappy. Pay special attention to major clients. Carry out market research and satisfaction surveys. Talk to suppliers to ensure you are not only getting the best deal for your customers your supply lines are secure. Keep your client base wide - you don't want to be in a position where losing one contract could seriously damage you.
Economic instability means markets can change overnight. Consequently, make sure you're not investing too heavily too far ahead in one market and build as much flexibility into your model and budgets as possible. Plan to survive as well as prosper. And keep your eye open for opportunities as less careful rivals flounder.
Fairly obvious in such hazardous times but make an assessment of overheads a frequent process. Make sure you're working at capacity in terms of staff, office or factory space and review all arms of the business. If something isn't contributing as much as another element, make a firm judgement call on whether it ever will. Look after the core business. Be ruthless to protect that and the people you employ, if it means losing some of them to benefit the rest.
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