Designing Performance Measurement Systems Theory and Practice of Key Performance Indicators
Contents (220 pages)
Quality Management and Process Indicators
1.1 General Concepts
1.2 Quality Management Systems
1.3 The Concept of Process
1.3.1 Definition
1.3.2 Process Modeling
1.3.3 Process Evaluation
1.4 Process Indicators
1.4.1 Functions of Indicators
1.4.2 Aims and Use of Indicators
1.4.3 Terminology
1.4.4 Categories of Indicators
1.4.5 A General Classification of Indicators
1.4.6 Comparison of Economic and Process Indicators
1.4.7 Indicators and Research: State of the Art
References
Use and Abuse of Indicators
2.1 Introduction
2.2 Human Development Indicator (HDI)
2.2.1 Life Expectancy Indicator (LEI)
2.2.2 Educational Attainment Indicator (EAI)
2.2.3 Gross Domestic Product Indicator (GDPI)
2.2.4 Calculating the HDI
2.2.5 Remarks on the Properties of HDI
2.3 Air Quality Indicators
2.3.1 The American Air Quality Indicator (AQI)
2.3.2 The ATMO Indicator
2.3.3 The IQA Indicator
2.3.4 Comments on the Meaning of (sub)Indicators
2.3.5 Comparison of Air-Quality Indicators
2.4 The Decathlon Competition
2.4.1 The “Normative” Effect of Scoring Indicators
2.4.2 Representation and Decision
References
From Measurement Theory to Indicator Theory
3.1 Historical Evolution of the Concept of Measurement
3.2 Stevens’ Theory of Scales of Measurement
3.2.1 Nominal Scale
3.2.2 Ordinal Scale
3.2.3 Interval Scale
3.2.4 Ratio Scale
3.2.5 Comments on Stevens’ Scale Types
3.2.6 Meaningfulness of Statements Concerning Scales
3.2.7 Statements Using (Non-)permissible Statistics
3.3 The “Representation Theory of Measurement”
3.4 The Formal Concept of Indicator
3.4.1 General Definitions
3.4.2 The “Representation Theory of Indicator”
3.5 Classification of Indicators
3.5.1 Objective and Subjective Indicators
3.5.2 Basic and Derived Indicators
3.6 The Condition of “Non-uniqueness” for Indicators
3.6.1 “Non-uniqueness” for Derived Indicators
3.6.2 “Non-uniqueness” for Basic Indicators
3.6.3 “Non-uniqueness” for Measurements
3.6.4 “Non-uniqueness” when Specializing the Representation Target
3.6.5 “Non-uniqueness” for Sets of Indicators
References
Properties of Indicators
4.1 Introduction
4.2 Single and Aggregated Performance
4.3 The Concept of Indicator
4.4 Further Considerations on the Classification of Indicators
4.4.1 The Representational Approach for Derived Indicators
4.5 Brief Outline of the Properties of Indicators in Literature
4.6 Taxonomy of the Properties of Indicators
4.6.1 Properties of Single Indicators
4.6.2 Properties of Sets of Indicators
4.6.3 Properties of Derived Indicators
4.7 Accessory Properties
4.8 Construction of Indicators and Property Checking
References
Designing a Performance Measurement System
5.1 The Concept of Performance Measurement System
5.1.1 Why Performance Indicators?
5.1.2 What Performance Indicators Will Not Tell You
5.1.3 Problems in Implementing a Performance Measurement System
5.2 The Construction Process
5.2.1 The Strategic Plan
5.2.2 Key Sub-processes
5.2.3 Stakeholder Needs
5.2.4 Vertical and Horizontal Integration of Performance Indicators
5.3 A Review of the Major Reference Models
5.3.1 The Concept of “Balancing”
5.3.2 The “Balanced Scorecard” Method
5.3.3 The “Critical Few” method
5.3.4 Performance Dashboard
5.3.5 The EFQM (European Foundation for Quality Management) Model
5.4 Selection of a Synthetic Set of Indicators
5.4.1 The Concept of “Relative Importance”
5.4.2 The Concept of “Minimum Set Covering”
5.4.3 The Concept of “Degree of Correlation”
5.5 Implementing a System of Performance Indicators
5.5.1 Examples of Developing Performance Indicators
5.6 Maintaining a Performance Measurement System
5.7 (Mis)use of Indicators
5.8 Indicators as Conceptual Technologies
References
Index
