Performance measurement systems (PMS) have been around for a while and while they are typically used by businesses, measuring performance is something people do regularly. Measuring performance involves setting goals and developing a plan to achieve the desired results. Part of the planning process is determining how to measure performance as you work toward a goal. Measuring progress provides information that can be used to make decisions to continue, improve, or eliminate activities in your plan. Just as a report card evaluates a student's performance and identifies areas where further growth can be achieved, PMSs serve the same purpose in the business world. PMSs give organizations feedback on the things they measure, which helps management determine areas in which they performed well and identify areas that need improvement. “As finance and accounting professionals, we have the opportunity to support our organizations' continuous improvement efforts by creating performance measurement systems that provide relevant, fact-based information about core business processes and key activities” (Miller, 1992). The key objective of a PMS is to help guide management in understanding, managing and improving its business processes while reducing costs. Cost management involves the continuous improvement of processes used throughout the organization with the aim of making them as efficient as possible, while reducing costs. As the business world has evolved due to changes in the economy, global competition, technology and environmental factors, it has become necessary to develop a new approach to measuring performance. According to Baldwin and Clark, "much of the decline in America's competitiveness is directly due to man... middle of paper..., JA (April 1992). New activity performance measures. CMA - Management Accounting Review, 66, n3. p.34(1). Retrieved January 16, 2011 from Academic OneFile via Gale: http://find.galegroup.com.proxy.davenport.edu/gtx/start.do?prodId=AONE&userGroupName=lom_davenportcRucci, AJ, Kirn, SP and Quinn, RT ( January-February 1998). The employee-customer profit chain at Sears. Harvard Business Review, 76, n1. p.82 (16). Retrieved February 5, 2011 from Academic OneFile via Gale: http://find.galegroup.com.proxy.davenport.edu/gtx/start.do?prodId=AONE&userGroupName=lom_davenportcVitale, MR, & Mavrinac, SC (August 1995) . How effective is your performance measurement system? Management Accounting (United States), 77, n2. p.43(5). Retrieved January 16, 2011 from Expanded Academic ASAP via Gale: http://find.galegroup.com/gtx/start.do?prodId=EAIM&userGroupName=lom_davenportc