Mgt 437 - Performance Measurement Paper

Performance Measurement Paper

David Lee

MGT/437

August 2012

C. Haydt

Performance Measurement Paper

Project managers, plan, initiate, execute, and close projects they are working on while using performance measurements to manage the projects. Measurements like evaluating, controlling, and budgeting enables project managers and project team members monitor the progress of the project. This paper will discuss the importance of performance measurement within a project as well as compare and contrast the three mentioned measurements.

Performance measurement is an important part of today’s business. It provides management with the information required to maintain a project on the right track. According to Shipman and Wholey (2011), “Performance measurement is the ongoing monitoring and reporting of program accomplishments, particularly progress toward preestablished goals” (para. 4). Without performance monitoring, the project may never meet its goal and end up costing a company substantially more in the budget, materials, and personnel causing the project to be more of a burden to the company then a increase in revenue and profits. In addition, customers will be dissatisfied, which can cause the loss of a return customer.

With performance measurements, a manager can address the type or level of program activities conducted the products and services delivered by the program, or the results of the outcomes (Shipman & Wholey, 2011). When customers and upper management requests updates on a project, you are able to look at the performance measurements and provide an accurate account on the status of the project. When conducting performance measurements a project manager will use many different measurements like evaluating measures.

Program evaluating measure examines achievement of program objectives in comparison of the program performance in the work schedule (Shipman & Wholey, 2011). This can help project manager improve the performance of the team and the project. By understanding were the program is not meeting expectations according to set standards, the program manager is able to correct or motivate team members to improve on the performance. It also will identify what is needed in order to maintain the project on track with the projected work schedule and timeline. Although performance evaluating is important, outside factors not viewed or studied could have an effect on the performance of the team or its product. Uncontrollable items like the weather can have an effect on equipment and the work environment that will affect the product and team performances. In addition, the evaluating measure is an after the