Performance improvement

Performance improvement is the concept of measuring the output of a particular process or procedure, then modifying the process or procedure in order to increase the output, increase efficiency, or increase the effectiveness of the process or procedure. The concept of performance improvement can be applied to either individual performance such as an athlete or organisational performance such as a racing team or a commercial enterprise.

In Organisational development, performance improvement is the concept of organizational change in which the managers and governing body of an organisation put into place and manage a programme which measures the current level of performance of the organization and then generates ideas for modifying organisational behavior and infrastructure which are put into place in order to achieve a better level of output. The primary goals of organisational improvement are to improve organizational effectiveness and organizational efficiency in order to improve the ability of the organisation to deliver its goods and/or services and prosper in the marketplaces in which the organization competes. A third area of improvement which is sometimes targeted for improvement is organisational efficacy which involves the process of setting organizational goals and objectives.

Performance improvement at the operational or individual employee level usually involves processes such as statistical quality control. At the organisational level, performance improvement usually involves softer forms of measurement such as customer satisfaction surveys which are used to obtain qualitative information about performance from the viewpoint of customers.Performance is a measure of the results achieved. Performance efficiency is the ratio between effort expended and results achieved. The difference between current performance and the theoretical performance limit is the performance improvement zone.

Another way to think of performance improvement is to see it as improvement in four potential areas. First, is the resource INPUT requirements (e.g., reduced working capital, material, replacement/reorder time,and set-up requirements). Second, is the THROUGHPUT requirements, often viewed as process efficiency; this is measured in terms of time, waste, and resource utilization. Third, OUTPUT requirements, often viewed from a cost/price, quality, functionality perspective. Fourth, OUTCOME requirements, did it end up making a difference.