DESIGNING PERFORMANCE-MEASURES - A STRUCTURED APPROACH

Describes the development and testing of a framework which can assist in the process of designing performance measures. Grounds the framewor k in the relevant literature and explains how it was developed and tes ted through a series of action research projects involving collaborato rs primarily from the aerospace and automotive industries. Notes that inadequately designed performance measures can result in dysfunctional behaviour often due to the method of calculation encouraging individu als to pursue inappropriate courses of action. The performance measure record sheet presented provides a structure which considers factors s uch as the purpose of the measure and the source of data. Notes the ad vantages of the record sheet, such as its use to audit existing measur es of performance and to facilitate the process of designing new ones.