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effectiveness

 and 

efficiency

 as introduced in Chapter 5 in the section on objective setting 

where we noted that it is important to include both effectiveness and efficiency measures.

The need for a structured performance management process is clear if we examine the 

repercussions if an organisation does not have one. These include: poor linkage of measures 

with strategic objectives or even absence of objectives; key data not collected; data inaccu-

racies; data not disseminated or analysed; or no corrective action. Many of the barriers to 

improvement of measurement systems reported by respondents in Adams et al. (2000) also 

indicate the lack of an effective process. The barriers can be grouped as follows:

● 

senior management myopia – performance measurement not seen as a priority, not under-

stood or targeted at the wrong targets – reducing costs rather than improving performance;

● 

unclear responsibilities for delivering and improving the measurement system;