Performance measurement framework with formal indicator definitions

Abstract

Definition of appropriate measures of organization's performance should be conducted in a systematic way. In this paper the performance measurement and indicators are discussed not only from the side of management models, but also from the point of view of measurement theories to find out appropriate definitions. In our work we propose a formal specification of indicators. The principles of indicator reformulation from free form indicators to formal requirements are formulated and applied in several examples from performance measures database. The formally defined indicators could be used in the proposed performance measurement framework that covers five-step indicator lifecycle. © 2011 Springer-Verlag.