Performance Measurement: How to Build Indicator Models to Quantify Performance and Minimise Uncertainty

What is the difference between a measure and a metric? And between a measure and an indicator? When does an indicator measure performance? When is an indicator considered a KPI? This book focuses on performance measurement through the definition of indicator models and KPIs (key performance indicators). The content is organised into three distinct parts, with the chapters gradually incorporating essential concepts for a progressive understanding of the subject matter. The first part, consisting of six chapters, serves as an introduction to the measurement process. It provides an initial presentation of the most relevant terms and concepts in the realm of measurement, laying a solid foundation for later chapters. The aim is to maintain an appropriate level of rigour while avoiding excessive detail. Where possible, definitions that have garnered widespread consensus are used, many of which are upheld by international standards. In the second part, the differentiation between result and performance is discussed and a classification of measures based on temporality is presented. Based on those ideas, a proposal is made for the concepts of key indicator and KPI. The third and final part suggests methods for implementing the previously discussed concepts and approaches through the design and development of indicator models with the specific objective of effectively measuring performance.