Importance of Assessing the Organization's Performance

To answer this question is to define enterprise-level performance. Reports have pointed out that the measures for enterprise performance relied on asking the questions and why they require to measure performance. Some of the reasons why professionals want to measure and report organizational performance are to justify the valid usage of investors’ money, navigate managerial decision making by pointing out the complex areas, compare performances of various functions, projects, and people, and exercise control. Therefore, the definition of enterprise-level performance can change as per the use it is put to.

This development has created one of the most comprehensive definitions of enterprise performance, which couples construct efficiency, effectiveness, and relevancy. Successful organizational performance is thus, where goals are met with optimum resources to fulfill relevant stakeholder needs. To measure organizational performance so firms can improve it. Regardless of measuring organizational performance or the definition of the adopted terms, professionals are looking at means to develop upon past performance. Considering the various levels of performance evaluation, several interventions are recognized to be useful.