Chapter 14
Measurement
and Evaluation
Chapter Objectives
1. Explain the importance of continuous measurement
and evaluation of facility and event organizations
2. Identify stakeholders who may provide valuable
information for organizations to understand their
performance
3. Differentiate measurement and evaluation techniques
and the impact each measure has on the
organization’s various internal and external
stakeholders
4. Define and articulate the strengths and weaknesses
of the various internal and external measurement
techniques
Why Measurement and Evaluation
is Important
•
•
•
•
•
•
•
Identify and solve problems.
Find ways to improve management.
Determine the value of the facility or event.
Measure success or failure.
Identify and measure impacts.
Satisfy sponsors and other stakeholders.
Gain acceptance, credibility, and support.
What are Performance Measures
Used for?
• Eight common purposes for performance
management:
– Evaluation, control, budgeting, motivation,
promotion, celebration, learning, and
improvement.
– Describe how well the organization is using its
internal and external inputs to produce the desired
output.
How and When to Measure
Performance?
• Most facilities and events use a single measure at a
single point of time (i.e., post-event)
• Strategies to improve measurement:
– Vary from whom they collect data
– Vary techniques used to collect data
• Qualitative
• Quantitative
Triple-Bottom Line
• Customer/participants
– Several key variables organizations
should concentrate on when evaluating
customer’s perceptions
– Scale of Service Quality in Recreational
Sports (SSQRS)
• Program quality
• Interaction quality
• Outcome quality
• Physical environment
Triple-Bottom Line (cont.)
• Internal operations
– Financial measures to determine how well the
organization is contributing to the bottom-line
– Traditional financial measures
• Return on investment, debt-to-equity, grossprofit, etc.
– Revenue growth and mix measures
• Indicate how well the organization is
performing towards organizational objectives
such as market share, increased markets, or
expanding its revenue sources
Triple-Bottom Line (cont.)
• Internal operations
– Cost reduction or efficiency measures
• Determine if they may enhance the
organization’s performance
– Evaluate how well they manage their assets to
generate a return
• Capacity management, space utilization, event
performance, among others
Triple-Bottom Line (cont.)
• Internal operations
– Human resources
• Measure employee behaviors and attitudes
– Turnover intentions, satisfaction,
commitment, etc.
• Allow organizations to better develop an
understanding of their employees’ perception of
the organization and assist with the human
resource management component
Triple-Bottom Line (cont.)
• External operations
– Economic impact
• Measures the organization’s ability to generate
new revenue for the host community, increase
impact on individual level income within the
host community, or the production of new jobs
within the host community
• Multipliers estimate the overarching impact of a
single dollar spent at a facility or an event
– Sales, income, and employment
Triple-Bottom Line (cont.)
• External operations
– Economic impact
• Five inviolable principles
– Exclusion of local residents and deflectors
– Exclusion of “time-switchers” and
“casuals”
– Use of income rather than sales output
measures of economic impact
– Use of multiplier coefficients rather than
multipliers
– Careful interpretation of employment
measures
Triple-Bottom Line (cont.)
• External operations
– Environmental impact
• The construction, maintenance, and resources
our facilities use to operate may also have a
negative impact on the local environment
• There is no such thing as a zero environmental
impact
• Strategies to generate a positive impact
– Reduce energy consumption
– Adopt environmentally safe products
– Provide electronic options for ticketing,
marketing, and other facility operations
Triple-Bottom Line (cont.)
• External operations
– Social impact
• Integral to the success and sustainability of the
organization to maintain a positive social impact
on the community
• Negative impacts
• Positive impacts
Triple-Bottom Line (cont.)
Positive Impacts
• Image enhancement
and increased
awareness
• Improved cultural
understanding
• Increased commercial
activity
• Improved facilities
and new sport
• Community cohesion
•
•
•
•
•
Negative Impacts
Crime
Displacement
Disruption of daily lives
Fan behavior
Poor
performance/management
Triple-Bottom Line (cont.)
• External operations
– Social impact
• Measures
– Social return on investment model (SROI)
»
Estimates the financial amount of
social value generated from the facilities
or events in the host community
– Social impact assessment
»
Measures the local residents’
attitudes, perceptions, and behaviors as
well as the health standards of the local
residents, number of local fitness
organizations, and lifestyle of the local
residents based on a facility or event.