3 Types of Performance Measures
David Parmenter in his extensive research in this area has concluded that there are three types of performance measures:
- Key Result Indicators (KRIs)
that tell the board how managers have performed in terms of a critical success factor or perspective of the Balanced Scorecard.
- Performance Indicators (PIs)
that tell staff and managers what to do.
that tell staff and managers what to do in order to increase performance dramatically.
An organization should have a governance report comprising up to ten measures providing KRIs for the board plus a Balanced Scorecard comprising up to 20 measures – a mix of KPIs and PIs – for the management team.