Enterprise Performance Measure

An Enterprise Performance Measure is a organizational performance measure for an enterprise.

• Context:
  • It can range from being a For-Profit Enterprise Performance Measure to being a Not-For-Profit Enterprise Performance Measure.
  • It can range from being a Enterprise KPI to being a Enterprise Operational Performnance Measure.
  • It can range from being a Strategic Performance Measure that evaluates long-term organizational goals to being an Operational Performance Measure that focuses on day-to-day efficiency.
  • It can range from being a Quantitative Enterprise Performance Measure to being a Qualitative Enterprise Performance Measure.
  • ...
  • It can be referenced by an Objectives and Key Results to set and track measurable goals.
  • It can be referenced by an Enterprise Performance Management System for managing and analyzing performance data across the enterprise.
  • It can appear in an Organizational Performance Report, such as a Balanced Scorecard, summarizing key metrics for stakeholders.
  • It can be connected to a Sub-Organization's Performance Measure (such as customer support KPIs), cascading down through the enterprise.
  • ...
• Example(s):
  • Organizational Sales Measure – A financial performance measure, such as Quarterly Sales, that tracks revenue generation.
  • Customer Satisfaction – A customer-focused performance measure that evaluates how satisfied customers are with the company's products or services.
  • Customer Engagement – A metric that tracks how actively customers interact with the enterprise's brand, products, or services.
  • Customer Profitability – A measure that calculates the net profit contributed by customers over time.
  • Employee Performance – A human resources measure that evaluates individual and team contributions to enterprise goals, often using employee productivity metrics.
  • Contract Compliance Rate – A measure of how frequently enterprise contract parties adhere to agreed-upon contractual terms.
  • Time to Contract Closure – A metric that estimates the average time it takes to close a contract deal.
  • Contract Renewal Rate – A measure calculated as: (Number of customer renewals / Total potential contract renewals) × 100, assessing customer retention.
  • Cost Efficiency – A financial measure that evaluates how effectively resources are utilized relative to budget allocations.
  • Quality Compliance – A measure that ensures enterprise deliverables meet predetermined quality standards.
  • …
• Counter-Example(s):
  • Departmental Performance Measures, ...
  • Individual Task Performance Measure, which focuses on specific tasks or actions rather than the enterprise as a whole.
  • Project-Specific Performance Measure that evaluates short-term project outcomes rather than long-term enterprise goals.
• See: Key Performance Indicator, Applied Information Economics, Critical Success Factor, Stakeholder (Corporate), Customer Requirement, Customer Service Advisor.

---

---

References

2016

• (Wikipedia, 2016) ⇒ https://en.wikipedia.org/wiki/performance_metric Retrieved:2016-5-11.
  • A performance metric is that which determines an organization's behavior and performance. Performance metrics measure an organization's activities and performance. It should support a range of stakeholder needs from customers, shareholders to employees. While traditionally many metrics are finance based, inwardly focusing on the performance of the organization, metrics may also focus on the performance against customer requirements and value. In project management, performance metrics are used to assess the health of the project and consist of the measuring of seven criteria: safety, time, cost, resources, scope, quality, and actions. In call centres, performance metrics help capture internal performance and can include productivity measurements and the quality of service provided by the customer service advisor. These metrics can include: Calls Answered, Calls Abandoned, Average Handle Time and Average Wait Time. Developing performance metrics usually follows a process of: #Establishing critical processes/customer requirements #Identifying specific, quantifiable outputs of work #Establishing targets against which results can be scored

    A criticism of performance metrics is that when the value of information is computed using mathematical methods, it shows that even performance metrics professionals choose measures that have little value. This is referred to as the "measurement inversion". For example, metrics seem to emphasize what organizations find immediately measurable — even if those are low value — and tend to ignore high value measurements simply because they seem harder to measure (whether they are or not). To correct for the measurement inversion other methods, like applied information economics, introduce the "value of information analysis" step in the process so that metrics focus on high-value measures. Organizations where this has been applied find that they define completely different metrics than they otherwise would have and, often, fewer metrics. For projects, the effort to collect a metric has to be weighed against its value as projects are temporary endeavors performed with finite resources. There are a variety of ways in which organizations may react to results. This may be to trigger specific activity relating to performance (i.e., an improvement plan) or to use the data merely for statistical information. Often closely tied in with outputs, performance metrics should usually encourage improvement, effectiveness and appropriate levels of control. Performance metrics are often linked in with corporate strategy and are often derived in order to measure performance against a critical success factor.

---