{"id":2270,"date":"2019-12-29T22:15:01","date_gmt":"2019-12-29T22:15:01","guid":{"rendered":"http:\/\/small-business-success-wnc.com\/?p=2270"},"modified":"2020-06-10T14:33:04","modified_gmt":"2020-06-10T14:33:04","slug":"performance-measurement-defined-small-businesses","status":"publish","type":"post","link":"https:\/\/small-business-success-wnc.com\/?p=2270","title":{"rendered":"Performance Measurement Defined for Small Businesses"},"content":{"rendered":"<h2>Performance Measurement Defined for Small Businesses<\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-2109 alignleft\" style=\"border: 7px outset silver;\" src=\"http:\/\/small-business-success-wnc.com\/wp-content\/uploads\/2019\/12\/Performance-Measurement-Defined-for-Small-Businesses.jpg\" alt=\"Performance Measurement Defined for Small Businesses\" width=\"300\" height=\"200\" \/><\/p>\n<h3>Performance Measurement in Small Businesses<\/h3>\n<p>The role of performance measurement in small businesses is primarily <em>one of learning<\/em>; providing the small business owner with the required information to navigate towards desired end results, as reflected in a small business\u2019s strategy. Similar to the principle used by ants, who leave pheromone trails to assist each other in navigating towards the food source. Performance measurement results should travel through the small business, facilitating communication, providing a base for analysis, synthesis, and ultimately decision making across all levels of the small business.<\/p>\n<p>If you as a small business owner don\u2019t measure \u2026<\/p>\n<ul>\n<li>\u00a0How do you know whether your performance is improving or declining?<\/li>\n<li>\u00a0How do you know where to improve?<\/li>\n<li>How do you know where to allocate or re-allocate scarce resources?<\/li>\n<li>How do you know how you compare with others?<\/li>\n<li>How do you know if your resources are productive or cost effective\/ efficient?<\/li>\n<\/ul>\n<p>Performance measurement in small businesses is critical for business success! Also read our blog post \u201c<a href=\"http:\/\/small-business-success-wnc.com\/10-good-reasons-for-small-business-performance-measurement\"><span style=\"text-decoration: underline;\"><em>10 Good Reasons for Small Business Performance Measurement<\/em><\/span><\/a>\u201d.<\/p>\n<hr \/>\n<h3>What is Performance Measurement?<\/h3>\n<p>Consider \u201cperformance\u201d and \u201cmeasurement\u201d:<\/p>\n<ul>\n<li><strong>Definition of Performance:<\/strong> Performance is the action or process of carrying out or accomplishing an action, task, or function.<\/li>\n<li><strong>Definition of Measurement:<\/strong> Measurement is a result, usually expressed in numbers, that you obtain by ascertaining the size, amount, or degree of something.<\/li>\n<\/ul>\n<p>Measurements quantify the input and output dimensions of processes, products, services, and the overall business (outcomes).<\/p>\n<p>Performance measurement is connected to the goals\/objectives\/targets of your small business. Read the blog post \u201c<a href=\"http:\/\/small-business-success-wnc.com\/performance-measurement-fits-into-small-businesses\"><span style=\"text-decoration: underline;\"><em>Where Performance Measurement Fits into Your Small Business<\/em><\/span><\/a>\u201d. A set of metrics are used to quantify or qualify the efficiency and effectiveness of actions taken to meet them. Performance measurement, therefore, make goals, objectives, and targets quantifiable, provide visibility into the performance of teams, employees, projects, or products within the Small business, and enable decision makers to take action.<\/p>\n<p><strong>Definition of Performance Measurement:<\/strong> Performance Measurement in small businesses is a structured process of:<\/p>\n<ul>\n<li><em>Developing measurable indicators<\/em> that can be systematically tracked to assess the meeting of predetermined goals, and<\/li>\n<li><em>Collecting and reporting information<\/em> on these measurable indicators to determine the progress made in achieving the goals.<\/li>\n<\/ul>\n<p>Performance Measurement is one of the pillars of small business excellence and should start before you start your business. You will gain valuable insights into strategic planning and documenting your business venture by doing this on the frontend.<\/p>\n<hr \/>\n<h3>Key Components of Performance Measurement in Small Businesses<\/h3>\n<p>The key elements of effective performance measurements include:<\/p>\n<ul>\n<li><strong>Clearly defined, actionable, and measurable goals\/objectives\/targets<\/strong> that based on the mission of your small business. Read blog post \u201c<a href=\"http:\/\/small-business-success-wnc.com\/performance-measurement-fits-into-small-businesses\"><span style=\"text-decoration: underline;\"><em>Where Performance Measurement Fits into Your Small Business<\/em><\/span><\/a>\u201d.<\/li>\n<li><strong>Cascading performance measures<\/strong> that can be used to measure how well goals\/objectives\/targets are being met. Read the blogpost \u201c<a href=\"http:\/\/small-business-success-wnc.com\/5-steps-developing-key-performance-indicators-small-businesses\"><span style=\"text-decoration: underline;\"><em>5 Easy Steps In Developing Key Performance Indicators For Small Businesses<\/em><\/span><\/a>\u201d.<\/li>\n<li><strong>Feedback loops<\/strong> to support continuous improvement of a small business \u2019s processes, practices, and results.<\/li>\n<\/ul>\n<p>The cascading performance measures should be:<\/p>\n<ul>\n<li><em>Relevant<\/em> and Aligned with business\u2019 objectives<\/li>\n<li><em>Result Driven<\/em> to drive high-performance<\/li>\n<li><em>Allow Innovation<\/em> \u2013 encouraging improved\/alternative methods<\/li>\n<li><em>Clear<\/em> and Easy to understand<\/li>\n<li><em>Inclusive and Representative<\/em> of performance<\/li>\n<li><em>Attributable<\/em> to (caused by) someone that influences it<\/li>\n<li><em>Responsive<\/em> to change (improvement)<\/li>\n<li><em>Accessible and Timely<\/em> based on readily available data<\/li>\n<li><em>Consistent<\/em> and Comparable represent the same thing over time<\/li>\n<li><em>Verifiable<\/em> \u2013 calculated from data that can be verified<\/li>\n<li><em>Cost-effective<\/em> \u2013 cost to collect data must balance its value (usefulness)<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Performance Measurement Defined for Small Businesses Performance Measurement in Small Businesses The role of performance measurement in small businesses is primarily one of learning; providing the small business owner with the required information to navigate towards desired end results, as reflected in a small business\u2019s strategy. Similar to the principle used by ants, who leave pheromone trails to assist each other in navigating towards the food source. Performance measurement results should travel through the small business, facilitating communication, providing a base for analysis, synthesis, and ultimately decision making across all levels of the small business. If you as a small business owner don\u2019t measure \u2026<span class=\"more-link\"><a href=\"https:\/\/small-business-success-wnc.com\/?p=2270\">Read More &rarr;<\/a><\/span><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[13],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/small-business-success-wnc.com\/index.php?rest_route=\/wp\/v2\/posts\/2270"}],"collection":[{"href":"https:\/\/small-business-success-wnc.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/small-business-success-wnc.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/small-business-success-wnc.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/small-business-success-wnc.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2270"}],"version-history":[{"count":8,"href":"https:\/\/small-business-success-wnc.com\/index.php?rest_route=\/wp\/v2\/posts\/2270\/revisions"}],"predecessor-version":[{"id":2342,"href":"https:\/\/small-business-success-wnc.com\/index.php?rest_route=\/wp\/v2\/posts\/2270\/revisions\/2342"}],"wp:attachment":[{"href":"https:\/\/small-business-success-wnc.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2270"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/small-business-success-wnc.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2270"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/small-business-success-wnc.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2270"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}