What gets measured gets done. Or does it?
There are so many ways a performance evaluation system can end up doing more harm than good. I can help to spot the potential pitfalls in your performance evaluation system.
As a minimum any performance measurement system must meet the follwing five criteria in order to be successful.
1) Selection of the right indicators: This means measures must be centered on the outcomes that matter most to the organization and their stakeholders.
2) Proper collection and storage of data: Data collection is critical to data integrity. Storage is important for data access.
3) Capabilities for analysis and interpretation of data: Analysis and interpretation is necessary for turning raw data into information on what is really going on.
4) Effective visual communication of performance measures: To get things moving it is necessary to effectively communicate results.
5) Proper application of performance measures: Performance measures can be applied for many different purposes. They can drive behavior in many different ways. It is important to carefully consider purposes and incentives.