7.5 Measuring performance versus value

Performance

• To be valid, must be measured in relation to an explicit “standard”, using appropriate performance concepts, measurement objects, units-of-measure and measurement techniques

Value

• To be valid, must be measured from a defined “perspective” of a stakeholder, using appropriate value concepts, measurement objects, units-of-measure and measurement techniques

Why does this matter?

  • Performance and value are different
  • There are no “absolute” performance or value measures
  • What performance “standards” are relevant ultimately depends on a stakeholder perspective

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