Performance measurement system

Abstract

This paper explains the importance of measuring performance and presents the Kanji Business Excellence Measurement System (KBEMS). An overview of performance measurement reveals that traditional systems have several drawbacks and do not fully support business excellence. KBEMS overcomes some of the limitations of current performance measurement systems and responds to the main requisites of a good performance system. Its criteria, which combine the fundamentals of Kanji's Business Excellence Model (KBEM) (see Kanji, 1998, 2002) and Kanji's Business Scorecard (KBS) see Kanji & Moura e S´a, 2002), will be presented in some detail and the methodology behind its development and application discussed. The performance measurement system proposed is the basis of a new certification scheme that aims to demonstrate that an organization is following the Critical Success Factors (CSFs) and developing adequate measurement methodologies to check progress and drive improvement. Kanji-certification is briefly discussed, which shows whether an organization has in place a comprehensive and reliable performance measurement system, based on the CSFs of organizational excellence. Moreover, it demonstrates whether the organization is measuring performance not only from an internal perspective, but also from the views of its stakeholders. Finally, an example is presented that shows how KBEMS can be used to measure performance.