Ongoing performance measures: Overview, definition, and example
What are ongoing performance measures?
Ongoing performance measures are metrics or indicators used by businesses to continuously evaluate the effectiveness and progress of various activities, departments, or overall organizational performance. These measures are tracked regularly (such as monthly, quarterly, or annually) and help businesses assess how well they are meeting their goals, targets, and objectives. Ongoing performance measures provide real-time insights that allow businesses to make informed decisions, adjust strategies, and improve operational efficiency.
For example, a business may track sales growth, customer satisfaction, employee productivity, or financial performance as ongoing performance measures.
Why are ongoing performance measures important?
Ongoing performance measures are important because they allow businesses to stay aligned with their objectives and adjust to changes in the market or operations. Regular performance tracking ensures that any issues or inefficiencies are identified early, giving businesses the opportunity to take corrective actions before problems escalate. These measures also support decision-making, help with goal setting, and enhance accountability within the organization.
For businesses, having a system in place for ongoing performance evaluation helps improve long-term strategy, optimize resources, and maintain a competitive edge.
Understanding ongoing performance measures through an example
Imagine a retail company, ABC Store, that tracks ongoing performance measures such as weekly sales figures, customer foot traffic, and inventory turnover rates. By regularly reviewing these metrics, the company can identify trends, such as a drop in sales, and make adjustments, such as increasing marketing efforts or optimizing stock levels, to improve performance in the following weeks.
In another example, a software company tracks ongoing performance measures like user engagement, customer support response time, and software bugs reported. These metrics help the company continuously improve the quality of its product and customer experience, ensuring long-term success in a competitive industry.
An example of an ongoing performance measures clause
Here’s how a clause like this might appear in a contract:
“The Parties agree to regularly review ongoing performance measures, including but not limited to sales, customer satisfaction, and operational efficiency. Performance will be evaluated on a quarterly basis, and adjustments will be made as necessary to meet agreed-upon objectives.”
Conclusion
Ongoing performance measures are essential tools for businesses to assess their progress and ensure they are meeting their goals. By regularly tracking key metrics, businesses can make timely adjustments, improve efficiency, and stay aligned with long-term objectives. Whether it's sales, productivity, or customer satisfaction, these measures provide valuable insights to guide strategic decision-making.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.