For every business, there are drivers that affect its success. Performance is measured in many ways and it is important for the business to know performance to know the way forward. Some of the reasons why miners should consider performance measurement include:
To be able to strategize better
Knowing the performance of a business can help in coming up with strategies for the business. This is due to the fact that you will know the key areas that are not performing and hence come up with ways of making them improve which will in turn help in improving the performance of the business.
Helps to identify the top performing employees
It is only through performance measurement that you can be able to draw a line between the employees that are high performers and those that are not. This is because you can be able to tell the ones that are meeting the targets and goals and those that are not according to the set goals and objectives.
Helps in increasing efficiency
Performance measurement is a great way of increasing the efficiency of the organization. Through the process you can be able to know the areas that take up a lot of costs and how to cut them down and that will help in increasing the returns and profits of the organization. Through the process it is also possible to be able to set priorities right and have the right priorities which will help in increasing the efficiency of the organization since you will be able to save on resources.
Increases a sense of accountability
Through measuring performance, one can be able to get real data and results which can help in creating a sense of accountability. The best part is that it will not be based on anecdotes and subjective judgments. This can also help the company to know how to base its incentives to its employees in case there is need for that. Through the data provided there will be more transparency in the organization and know key areas that need performance. That can help in improving individual employee performance.
Helps in creating competitive advantage for the organization
Through the process, one can be able to do benchmarking against the competitor companies and that can help the company to be able to strategize to perform better than competitors and hence achieve competitive advantage.
Proper cost allocation
Performance measurement can help one to estimate costs more accurately for any future projects since one can be able to do comparisons with past projects based on the data provided.
There are many more advantages of performance measurement; those are just but a few. Managers can be able to know the best practices in the organization and that can help in expanding the use in other areas.
Getting started with key performance indicators (KPI) is very simple. You can get it from the KPI book and the internet. Basically it all depends on the kind of organization and what it deals with.