A performance measure is the figure you check to see if an objective is being met. The measure must test what the objective is about: a sales objective needs a sales figure, and a customer objective needs a customer figure.
This lesson follows writing measurable objectives within vision, mission and objectives.
Which measure matches which objective?
| Objective is about | Suitable measure | Example figure |
|---|---|---|
| Sales | Sales revenue, units sold | RM7 200 each month |
| Profit | Profit for the month | RM2 600 |
| Customer satisfaction | Feedback-form rating, complaints | 4.5 out of 5; 3 complaints |
| Cost control | Cost per unit, total cost | RM4.20 per cake |
| Staff | Training hours, staff turnover | 12 hours each |
Worked example: Kek Nisa
An invented cake shop earns a monthly profit of RM2 000. The objective is to raise monthly profit to RM2 600 within six months.
Measure. Monthly profit, because the objective is about profit.
Target gap. 2 600 − 2 000 = RM600 of extra profit needed.
Result after six months. The profit is RM2 350.
Progress. The profit rose by 2 350 − 2 000 = RM350. As a share of the RM600 needed, that is 350 ÷ 600 × 100 = 58.3%, so the shop closed a little over half the gap. It is RM250 short of the target (2 600 − 2 350).
A good case answer then uses a clue. If the case says the cost of butter rose during the period, that is a plausible reason the profit stayed below target, and the owner could review costs.
The mistake that costs marks
The common slip is using a measure that does not test the objective.
| Objective | Student’s measure | Problem |
|---|---|---|
| “Raise customer satisfaction to 4.5 out of 5” | Monthly sales | Sales can rise even when customers are unhappy. |
| “Raise customer satisfaction to 4.5 out of 5” | Feedback-form rating | Directly tests the objective. |
A second slip is to say “the objective was not achieved” and stop. State the gap in figures, so the marker sees you can read performance.
Check yourself
Invented case: Warung Cendol has an objective of cutting average waiting time from 10 minutes to 7 minutes within three months. After three months the waiting time is 8 minutes. Name the measure, state the gap and say whether the objective was met.
Answer
Measure: average waiting time in minutes.
Progress: the wait fell by 10 − 8 = 2 minutes, out of a planned 10 − 7 = 3 minutes. That is 2 ÷ 3 × 100 = 66.7% of the planned improvement.
Verdict: not fully met, since 8 minutes is still 1 minute above the 7-minute target. A sentence that adds a reason from the case, if one is given, earns extra credit.
What to study next
Even a good objective may need revising when conditions change. Continue with explaining why objectives may change, and record measure mix-ups in the mistake log.
If you want a teacher to go through performance questions with you, see online one-to-one Business tuition.