3 Types of Performance Measures

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3 Types of Performance Measures

David Parmenter in his extensive research in this area has concluded that there are three types of performance measures:
- Key Result Indicators (KRIs) that tell the board how managers have performed in terms of a critical success factor or perspective of the Balanced Scorecard.
- Performance Indicators (PIs) that tell staff and managers what to do.
- KPIs that tell staff and managers what to do in order to increase performance dramatically.
An organization should have a "governance report" comprising up to ten measures providing KRIs for the board plus a Balanced Scorecard comprising up to 20 measures – a mix of KPIs and PIs – for the management team.

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		1 Aamir Firoz Shamsi Professor, Pakistan
	Governance Report I agree with the idea of a “governance report” comprising details for all levels of management in terms of KRIs, PIs and KPIs. Corporate governance is the talk of town in Pakistani corporate world. My recent research, which is going to be published soon, indicates this aspect very clearly that such sort of governance reports should be made compulsory by Pakistan’s SECP on the basis of Balanced Scorecard.

		3 Mugesh Babu Director, India
	Other Types of Performance Indicators Performance indicators can also be categorized into "Lagging Indicators" and "Leading Indicators". Lag indicators are measured at the end of a process. Lead indicators are used during a process. For example, "Number of safety training" is a lead indicator and the related Lag indicator is the "Number of incidents".