Question

Identify challenges that could occur as you attempt to build out a measurement system. Some areas of consideration:

Challenges encountered in trying to obtain data

Challenges in obtain an appropriate amount of data (sample size)

Challenges in regards to the measurement device

Challenges in regards to the data variability (season, people, environmental changes)

Answer 1

A performance measurement system is quite critical for assessing the overall effectiveness of the performance of the system. So its development must be done strategically so that the business objectives get facilitated by the functionality of the measurement system. Some of the specific challenges which need to be taken care, while developing an effective performance measurement system are:

• The performance measurement objectives need to be set strategically
• The methodology followed to measure performance must help in achieving the performance objectives
• The various sources from which data is collected for performance evaluation must be clearly validated
• Based on the overall objective of analysis, appropriate sample size of data must be chosen
• Various external and internal factors which may have a considerable impact on the performance of the system, must be taken into consideration