Measurementis a tool used by organizations to improve the general performance ofthe management. It enables the organization to achieve the targetedobjectives, align behaviors and attitudes, and, eventually, have apositive effect on the organizational performance. Performancemeasurement provides an avenue for the collection of relevantinformation used in promotional campaigns (Dessinger et al., 2012).In the process of monitoring, one acquires useful information inpromotional initiatives. For instance, it may include positivetestimonials of your location by existing investors. In addition itcan be used as an investment business champion that includerepresenting existing firms as an investment ambassador to meet withthe potential firms and encourage them to invest.
Measurementenables collection and monitoring of useful data, which givesrelevant information in a format useful to potential investors,private sector partners, and government officials. For example, onecannot informs others about recent investments in his or her locationif he or she has not recorded that information. Therefore, suchinformation provided quantify indicators of success, which raise theconfidence of private partners and encourages further investment andparticipation (Childs, 2008).
However,performance measurement encourage perverse behaviors, stiflinginnovation and learning, and has less impact on the decision makingprocess in an organization (Dessinger et al., 2012). This is becauseof varied contradicting results of the performance measurement.Ensuring the team and stakeholders are aligned on to the objectivesof the firm is an effective measurement on quantifying the quality ofstakeholders management. Moreover, facilitating a session tobrainstorm the quantitative and qualitative metric would be goodleading indicators of success (Childs, 2008). In the process, oneunderstands what dials are available and how to turn them so thatthey can watch the differences that can come about from turning thedial, if any.
Childs,S. (2008). Lis-perf-measures. PerformanceMeasurement and Metrics Performance Measurement Metric, 9(1)
Dessinger,J. C. (2012). On failure, risk, and success. PerformanceImprovement Perf. Improv., 51(3),2-2.
Freeman,R. E. (n.d.). Preface To The 2010 Reissue. AStakeholder Approach Strategic Management,V-Vi.