Predicting performance

Performance measurement and the balanced scorecard is becoming ubiquitous. However, this paper will argue that some of the early work on performance measurement and management conducted in the early part of the twentieth century has been overlooked by more recent writers. In particular, prediction in today’s literature is not the same concept as that developed by Dr Walter Shewhart in the 1920s. This paper traces the development of performance measurement from its accounting and operational roots until today and concludes that current use of performance measurement could benefit from earlier developments. In particular, the paper argues that the current obsession with testing success maps has limitations as they view the world as being static – relationships holding for all time. The paper proposes that a more dynamic view is taken to these relationships so managers do not become trapped in an outdated strategy map.