Keys to Excelling at Performance Measurement

Job performance is a topic often discussed, and for good reason; but job performance is also something that can be easily misunderstood. Whether you are a CEO, front-line worker, or middle manager, job performance will be central to your success at work. So, what really matters when it comes to job performance?

The most important part about job performance is measurement — correct measurement. Now, not everyone will be measured by the same metrics, but that the metrics used to capture job performance are relevant, accurate, and reasonable is critical. To properly determine who is performing and who is not, reliable and accurate performance measurement systems are required. Having a comprehensive understanding of what a performance measurement system should encompass is vital to ensuring the system functions properly.

Performance measurement (PM) is the mechanism that allows managers and organizations to gain an understanding of individual, team, and overall organizational performance. If this measurement system is not structured properly, all measures of individual, team, and organizational performance will be inaccurate. Crucial to this discussion of an accurate PM system is the consideration of the performance criteria. Performance criteria represent the aspects of performance that specific stakeholders have identified as critical. Performance criteria should be chosen based on the requirements and duties of the job. Criteria should be focused on what defines success and what the employees were hired to do. Performance is not the outcome or consequence of behavior, rather, performance is the behavior itself. Therefore, performance criteria for every individual, team, and organization must be appropriately defined so that everyone knows what is required to perform with excellence.

When designing a PM system, there are five vital aspects to consider. The purpose of the measurement drives the measurement process and determines whether performance should be measured using multiple criteria or a single metric. The content of the measurement represents the conceptual criteria, that is, verbal statements regarding the important outcomes related to a particular problem. This content represents the gold standard of a highly successful performer. The timing of the measurement can have a significant impact on what information is captured. Therefore, paying close attention to the point when performance is measured and what information is captured during this period is paramount. The fidelity of the measurement setting is also important, and the level of fidelity, nature of the task at hand, and the purpose of the measurement must all be carefully considered when choosing the PM setting. Finally, the techniques/tools used for measurement also play an important role. Ensuring that performance data is accurately captured via proper tools and techniques will help obtain accurate and reliable information.

Job performance is arguably the most important part of someone’s role within an organization. However, not every organization excels at properly capturing and measuring the performance of their employees. Not capturing job performance reliably creates major issues for the entire organization. Having a comprehensive understanding of PM is the first step to making sure that your organization’s PM system is doing what it is supposed to do. After understanding what PM really is, there are aspects that must be considered to ensure that PM system is useful. By considering the purpose, content, timing, fidelity, and techniques/tools of the PM system, organizations can be confident that they have designed a reliable PM system. These considerations should not be taken lightly, as an organization without a complete PM system is barely an organization at all.

Wildman, J.L., Bedwell, W.L., Salas, E., & Smith-Jentsch, K.A. (2011). Performance Measurement at Work: A Multilevel Perspective.

Keys to Excelling at Performance Measurement was originally published in Horizon Performance on Medium, where people are continuing the conversation by highlighting and responding to this story.