An integrated model of performance measurement includes these levels of implementation:
- Strategy development and goal deployment (Senior Management).
- Key result areas (KRA). The limiting number of areas in which results will ensure successful competitive performance for the organization.
- Key performance indicators (KPI). The actual measures used to quantitatively assess performance against the critical success factors. There should be at least one KPI for each.
- Process management and measurement (PPM) includes measures of inputs, process, and outputs. Outputs from a supplier form the inputs to the next customer. It is only necessary to define the process and output. (Process Management Level)
- Process measures monitor the activities of a process and motivate people within a process.
- Output measures report the results of a process and are used to control resources.
- Performance appraisal and management (PAM) includes two linked elements.
- Performance management. Systematic data-oriented approach to managing people at work on an on-going basis.
- Performance appraisal. Process by which organizations establish measures and evaluate individual employees’ behavior and accomplishments.