Why measure performance? According to the author Theodore H. Poister, performance measurement should produce objective, relevant information on the effectiveness of a program or organization that can be utilized to improve management, decision-making, and performance —— and increase accountability. Poister defines performance measurement as "the process of defining, monitoring and using objective indicators of the performance of organizations and programs on a regular basis." This evaluative technique focuses attention on what is being measured and impacts subsequent behavior and decisions.

Poister, a professor of public administration at Georgia State University in Atlanta, specializes in public management and applied research methods. He has written four books and many journal articles and has been involved in performance measurement projects with state agencies in Pennsylvania and Georgia, various local governments and nonprofit organizations, and the Transportation Research Board.

Measuring Performance in Public and Nonprofit Organizations is divided into four parts. Part one discusses the evolution of performance measurement in government and the nonprofit sector and places it in the context of results-oriented approaches to management. The limitations of performance measurement systems are also discussed as well as their challenges and difficulties. A major point made by the author in part one is that performance measurement systems are often not stand-alone systems. They support other management and decision-making processes, such as planning, budgeting, or benchmarking.

The chapters in part two discuss key methodological concerns such as what to measure, how to measure the different dimensions of performance, and what to do with the data once it is collected. Part three discusses five principal types of applications of performance measures of value to public and nonprofit agencies: strategic planning, budgeting, performance management systems, process improvement efforts, and benchmarking organization performance against other agencies or programs. Part four emphasizes the process of implementing effective measurement systems.

A major theme of the book is managing for results in public and nonprofit agencies. But the author recognizes that there are limitations to performance measurement. Even though these systems are meant to bring objective, results-oriented information to decision making, this information might be ignored and may not automatically be used.

This book has a wealth of information about performance measurement —— from the evolution of the field to the implementation of evaluation tools in practical areas of organization management. It includes an index as well as an extensive reference list, and there are numerous charts and tables that help to illustrate the author's points. The book appears best suited for a scholarly audience. But nonprofit managers interested in measuring the performance of their organization could certainly benefit from the information presented by the author.

For citations to additional literature on this topic, refer to Literature of the Nonprofit Sector Online, using the subject heading "Program evaluation."