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DEFINITION 1: Performance indicator refers to the means by which an objective can be judged to have been achieved or not achieved. Indicators are therefore tied to goals and objectives and serve simply as âyardsticksâ by which to measure the degree of success in goal achievement.
Performance is a measure of the results achieved. Performance efficiency is the ratio between effort expended and results achieved. The difference between current performance and the theoretical performance limit is the performance improvement zone.