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The concept of assessing the result of a particular method, procedure or process is called performance improvement. The modification of a process to further gain efficiency or increase its effectiveness is also part of it. Performance improvement may apply to an individual performance or an organizational performance like that of a commercial enterprise.

In organizational development, performance improvement is the model of organizational change wherein the board of directors, managers or other governing body of an organization install and facilitate a program that will serve as a yardstick for measuring performance. This means measuring the current level of performance of the organization and then generating ideas for tweaking organizational behavior and infrastructure.

These ideas are then put into effect, with the aim of achieving greater output. The primary goals of organizational improvement are to increase organizational effectiveness and efficiency to improve the ability of the organization to deliver goods and or services. A third area sometimes targeted for improvement is organizational efficacy, which involves the process of setting organizational goals and objectives.

There are three levels in an Organization:

1. Organizational Level – strategic, design/structure, and deployment of resources
2. Process Level – process improvement and re-engineering interventions
3. Job/Performer Level – coaching, performance management, and training interventions

The Three Performance Needs that must be met at each of the Three Levels are:

1. Goals – specific standards or expectations that customers have for products or services
2. Design – configurations that enable goals to be met effectively
3. Management – practices that ensure goals are updated and are actually met

Failure to manage these variables will lead to a failure to manage the business holistically. Thus, every performance improvement effort must be viewed through this.

Further reading: Corporate Governance | Audit | Performance Improvement