Performance improvement
Encyclopedia
Performance improvement is the concept
of measuring
the output of a particular process
or procedure
, then modifying the process or procedure to increase the output
, increase efficiency
, or increase the effectiveness of the process or procedure. The concept of performance improvement can be applied to either individual performance such as an athlete or organisational performance such as a racing
team or a commercial enterprise
.
In Organisational development, performance improvement is the concept of organizational change in which the managers
and governing body
of an organisation put into place and manage a programme which measures the current level of performance of the organization and then generates ideas for modifying organisational behavior and infrastructure
which are put into place to achieve higher output
. The primary goals of organizational improvement are to increase organizational effectiveness
and efficiency to improve the ability of the organization to deliver goods and or services. A third area sometimes targeted for improvement is organizational efficacy, which involves the process of setting organizational goals and objectives.
Performance improvement at the operational or individual employee level usually involves processes such as statistical quality control. At the organizational level, performance improvement usually involves softer forms of measurement such as customer satisfaction
surveys which are used to obtain qualitative information about performance from the viewpoint of customers.
Another way to think of performance improvement is to see it as improvement in four potential areas. First, is the resource INPUT requirements (e.g., reduced working capital
, material, replacement/reorder time,and set-up requirements). Second, is the THROUGHPUT requirements, often viewed as process efficiency; this is measured in terms of time, waste, and resource utilization. Third, OUTPUT requirements, often viewed from a cost/price, quality, functionality perspective. Fourth, OUTCOME requirements, did it end up making a difference.
Performance is an abstract concept and must be represented by concrete, measurable phenomena or events to be measured. Baseball
athlete performance is abstract covering many different types of activities. Batting average
is a concrete measure of a particular performance attribute for a particular game role, batting, for the game of baseball.
Performance assumes an actor of some kind but the actor could be an individual person or a group of people acting in concert. The performance platform is the infrastructure or devices used in the performance act.
There are two main ways to improve performance: improving the measured attribute by using the performance platform more effectively, or by improving the measured attribute by modifying the performance platform, which in turn allows a given level of use to be more effective in producing the desired output.
For instance, in several sports such as tennis
and golf
, there have been technological improvements in the apparatuses used in these sports. The improved apparatus in turn allows players to achieve better performance with no improvement in skill by purchasing new equipment. The apparatus, the golf club
and golf ball
or the tennis racket, provide the player with a higher theoretical performance limit.
and improvement can be thought of as a cycle
:
Concept
The word concept is used in ordinary language as well as in almost all academic disciplines. Particularly in philosophy, psychology and cognitive sciences the term is much used and much discussed. WordNet defines concept: "conception, construct ". However, the meaning of the term concept is much...
of measuring
Measurement
Measurement is the process or the result of determining the ratio of a physical quantity, such as a length, time, temperature etc., to a unit of measurement, such as the metre, second or degree Celsius...
the output of a particular process
Business process
A business process or business method is a collection of related, structured activities or tasks that produce a specific service or product for a particular customer or customers...
or procedure
Procedure (term)
A procedure is a sequence of actions or operations which have to be executed in the same manner in order to always obtain the same result under the same circumstances ....
, then modifying the process or procedure to increase the output
Output
Output is the term denoting either an exit or changes which exit a system and which activate/modify a process. It is an abstract concept, used in the modeling, system design and system exploitation.-In control theory:...
, increase efficiency
Efficiency (economics)
In economics, the term economic efficiency refers to the use of resources so as to maximize the production of goods and services. An economic system is said to be more efficient than another if it can provide more goods and services for society without using more resources...
, or increase the effectiveness of the process or procedure. The concept of performance improvement can be applied to either individual performance such as an athlete or organisational performance such as a racing
Racing
A sport race is a competition of speed, against an objective criterion, usually a clock or to a specific point. The competitors in a race try to complete a given task in the shortest amount of time...
team or a commercial enterprise
Business
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...
.
In Organisational development, performance improvement is the concept of organizational change in which the managers
Management
Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively...
and governing body
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
of an organisation put into place and manage a programme which measures the current level of performance of the organization and then generates ideas for modifying organisational behavior and infrastructure
Infrastructure
Infrastructure is basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an economy to function...
which are put into place to achieve higher output
Output
Output is the term denoting either an exit or changes which exit a system and which activate/modify a process. It is an abstract concept, used in the modeling, system design and system exploitation.-In control theory:...
. The primary goals of organizational improvement are to increase organizational effectiveness
Organizational effectiveness
Organizational effectiveness is the concept of how effective an organization is in achieving the outcomes the organization intends to produce. The idea of organizational effectiveness is especially important for non-profit organizations as most people who donate money to non-profit organizations...
and efficiency to improve the ability of the organization to deliver goods and or services. A third area sometimes targeted for improvement is organizational efficacy, which involves the process of setting organizational goals and objectives.
Performance improvement at the operational or individual employee level usually involves processes such as statistical quality control. At the organizational level, performance improvement usually involves softer forms of measurement such as customer satisfaction
Customer satisfaction
Customer satisfaction, a term frequently used in marketing, is a measure of how products and services supplied by a company meet or surpass customer expectation...
surveys which are used to obtain qualitative information about performance from the viewpoint of customers.
Performance defined
Performance is a measure of the results achieved. Performance efficiency is the ratio between effort expended and results achieved. The difference between current performance and the theoretical performance limit is the performance improvement zone.Another way to think of performance improvement is to see it as improvement in four potential areas. First, is the resource INPUT requirements (e.g., reduced working capital
Working capital
Working capital is a financial metric which represents operating liquidity available to a business, organization or other entity, including governmental entity. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. Net working capital is...
, material, replacement/reorder time,and set-up requirements). Second, is the THROUGHPUT requirements, often viewed as process efficiency; this is measured in terms of time, waste, and resource utilization. Third, OUTPUT requirements, often viewed from a cost/price, quality, functionality perspective. Fourth, OUTCOME requirements, did it end up making a difference.
Performance is an abstract concept and must be represented by concrete, measurable phenomena or events to be measured. Baseball
Baseball
Baseball is a bat-and-ball sport played between two teams of nine players each. The aim is to score runs by hitting a thrown ball with a bat and touching a series of four bases arranged at the corners of a ninety-foot diamond...
athlete performance is abstract covering many different types of activities. Batting average
Batting average
Batting average is a statistic in both cricket and baseball that measures the performance of cricket batsmen and baseball hitters. The two statistics are related in that baseball averages are directly descended from the concept of cricket averages.- Cricket :...
is a concrete measure of a particular performance attribute for a particular game role, batting, for the game of baseball.
Performance assumes an actor of some kind but the actor could be an individual person or a group of people acting in concert. The performance platform is the infrastructure or devices used in the performance act.
There are two main ways to improve performance: improving the measured attribute by using the performance platform more effectively, or by improving the measured attribute by modifying the performance platform, which in turn allows a given level of use to be more effective in producing the desired output.
For instance, in several sports such as tennis
Tennis
Tennis is a sport usually played between two players or between two teams of two players each . Each player uses a racket that is strung to strike a hollow rubber ball covered with felt over a net into the opponent's court. Tennis is an Olympic sport and is played at all levels of society at all...
and golf
Golf
Golf is a precision club and ball sport, in which competing players use many types of clubs to hit balls into a series of holes on a golf course using the fewest number of strokes....
, there have been technological improvements in the apparatuses used in these sports. The improved apparatus in turn allows players to achieve better performance with no improvement in skill by purchasing new equipment. The apparatus, the golf club
Golf club (equipment)
A golf club is used to hit a golf ball in a game of golf. Each club is composed of a shaft with a grip and a clubhead. Woods are mainly used for long-distance fairway or tee shots; irons, the most versatile class, are used for a variety of shots; Hybrids that combine design elements of woods and...
and golf ball
Golf ball
A golf ball is a ball designed to be used in the game of golf.Under the Rules of Golf, a golf ball weighs no more than 1.620 oz , has a diameter not less than 1.680 in , and performs within specified velocity, distance, and symmetry limits...
or the tennis racket, provide the player with a higher theoretical performance limit.
Levels
Performance improvement can occur at different levels:- an individual performer
- a teamTeam performance managementTeam performance management is the concept of adjusting the composition, context or direction of a team or work group in order to increase the effectiveness of the team or group as measured by:* Organizational benchmarks for teams...
- an organizational unitOrganizational UnitIn computing, an Organizational Unit provides a way of classifying objects located in directories, or names in a digital certificate hierarchy, typically used either to differentiate between objects with the same name , or to parcel out authority to create and manage objects In computing, an...
- the organizationOrganizationAn organization is a social group which distributes tasks for a collective goal. The word itself is derived from the Greek word organon, itself derived from the better-known word ergon - as we know `organ` - and it means a compartment for a particular job.There are a variety of legal types of...
itself
Cycle
Business performance managementBusiness performance management
Business performance management is a set of management and analytic processes that enable the management of an organization's performance to achieve one or more pre-selected goals...
and improvement can be thought of as a cycle
Business cycle
The term business cycle refers to economy-wide fluctuations in production or economic activity over several months or years...
:
- Performance PlanningPlanningPlanning in organizations and public policy is both the organizational process of creating and maintaining a plan; and the psychological process of thinking about the activities required to create a desired goal on some scale. As such, it is a fundamental property of intelligent behavior...
where goals and objectives are established - Performance Coaching where a managerManagementManagement in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively...
intervenes to give feedbackFeedbackFeedback describes the situation when output from an event or phenomenon in the past will influence an occurrence or occurrences of the same Feedback describes the situation when output from (or information about the result of) an event or phenomenon in the past will influence an occurrence or...
and adjust performance - Performance appraisalPerformance appraisalA performance appraisal, employee appraisal, performance review, or development discussion is a method by which the job performance of an employee is evaluated typically by the corresponding manager or supervisor. A performance appraisal is a part of guiding and managing career development...
where individual performance is formally documented and feedback delivered
See also
- Collaborative methodCollaborative methodCollaborative methods are processes, behaviors and conversations that relate to collaboration between individuals. These methods specifically aim to increase the success of teams as they engage in collaborative problem solving...
- FeedbackFeedbackFeedback describes the situation when output from an event or phenomenon in the past will influence an occurrence or occurrences of the same Feedback describes the situation when output from (or information about the result of) an event or phenomenon in the past will influence an occurrence or...
- ExperimentExperimentAn experiment is a methodical procedure carried out with the goal of verifying, falsifying, or establishing the validity of a hypothesis. Experiments vary greatly in their goal and scale, but always rely on repeatable procedure and logical analysis of the results...
- EfficacyEfficacyEfficacy is the capacity to produce an effect. It has different specific meanings in different fields. In medicine, it is the ability of an intervention or drug to reproduce a desired effect in expert hands and under ideal circumstances.- Healthcare :...
- Employee development
- Performance engineeringPerformance EngineeringPerformance engineering within systems engineering, encompasses the set of roles, skills, activities, practices, tools, and deliverables applied at every phase of the Systems Development Life Cycle which ensures that a solution will be designed, implemented, and operationally supported to meet the...
- Performance measurementPerformance MeasurementPerformance measurement with a process is the complement to process execution. Based on measured performance, the feedback control loop may be closed. The metrics to assess performance is set according to a determined econometric model...
- Personal developmentPersonal developmentPersonal development includes activities that improve awareness and identity, develop talents and potential, build human capital and facilitates employability, enhance quality of life and contribute to the realization of dreams and aspirations...
- Operations ResearchOperations researchOperations research is an interdisciplinary mathematical science that focuses on the effective use of technology by organizations...
/ Management Science, Industrial EngineeringIndustrial engineeringIndustrial engineering is a branch of engineering dealing with the optimization of complex processes or systems. It is concerned with the development, improvement, implementation and evaluation of integrated systems of people, money, knowledge, information, equipment, energy, materials, analysis...
External links
- The International City/County Management Association - Center for Performance Measurement
- How to Respond
- Carnegie Mellon Software Engineering Institute CMMI
- Office of Personnel Management
- Creating a Performance Improvement Culture
- International Society for Performance Improvement
- Improving the performance of a single function in ICT