Organizational performance measurement tells us how well the organization is doing at whatever it does. Performance measures describe how the organization defines performance. In the SOAR framework, performance corresponds with the 'Results' component. It does not deal with the 'Action' component - or what gets done to make things better. Performance focuses on the facts: Are we getting better or not?
Maintain Monitor Improve
Performance is the generic term which may encompasses subcategories such as Quality, Risk or Safety. Organizations may use different frames of reference or terms for subcategories of performance.
Performance measure is the generic term to describe how performance is defined. For categories such as quality or risk this translates into quality indicators or risk factors. Both of these are types of performance measures.
Each performance measure will have a precise definition which clearly specifies how performance is measured. Performance parameters clarify what levels of performance are considered 'good' or 'poor'. Our model uses the notions of baseline and target performance. Baseline performance is the current level of performance upon which the organization hopes to improve. Target performance is the future level of performance which the organization hopes to attain.
Actions define and execute the changes to be made in order to improve performance.
Actions may be major strategic initiatives affecting the entire organization, or minor tweaks in processes for a specific organizational unit. Both change the organization. Both seek to make the organization better in the future that it is today. Both leave the organization in a different state - with a different level of performance.