Product development performance measurement

Abstract

A performance measure plays three simultaneous roles (see Fig. 8.1). One role is that of an objective (a goal or a target). This represents the disaggregation or statement of a strategy or a plan. For example, one objective is to ‘complete the development project within 180 days.’ The second role is as a metric (an actual measurement tool or instrument). This represents a defined and agreed upon way to measure the managerial construct of interest. For example, one• • • • • •metric to capture project duration is ‘the number of days elapsed between formal project approval and first customer shipment of completed product.’1

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