What should targets in performance measurement represent?

Targets in performance measurement should represent lower-level objectives in specific areas. These targets are concrete and measurable outcomes that organizations aim to achieve within particular departments or processes, allowing for a more focused approach to monitoring performance. By establishing specific targets, businesses can evaluate their progress towards broader goals more effectively.

This focus on lower-level objectives ensures that performance measurement is actionable, making it easier to identify areas that may require improvement or change. These targets can directly inform decision-making and strategic adjustments, as they provide clear indicators of success or failure in particular aspects of the business. Through this detailed level of measurement, organizations can ensure that they are aligning their day-to-day operations with their high-level strategic goals.