Performance measurement is used by various organizations to achieve their strategic goals. It is usually performed in the framework of day-to-day activities. The performance is extremely significant for the company as it enhances its competitive ability. That is why it should be based on the critical points of the organization that is likely to cause problems currently or in future during the process of development. In the historical perspective the performance measurement and management dealt with “the evolution from traditional approaches based on the measurement of financial standards – profit, profitability, cash flow approaches to modern measurement value for the owners and shareholders” (Milichovsky and Hornungova 191). It is claimed that the performance measures influence “organizational structure, level of competition, the size of the company, and business strategy on the use of performance measures” (Fakhri 46). Mentioned areas are crucial for every organization, and they are constantly changing to adapt to the needs of the time. Thus, performance measures do not stay the same with the course of time. To prove this, the authoritative literature relevant to the topic will be evaluated. The evolution of performance measurement process is necessary for the success of the organization as it helps to make decisions that can improve the state of it (Fakhri, Menacere and Pegum 6). The demands of the customers alter very often especially in the developing countries, and this will greatly help to meet them. Unfortunately, according to the research, almost 60 percent of the interviewees believe that the performance management approach they have today does not drive employee engagement and high performance (Buckingham and Goodall 40). However, it was not always so. Starting with the 1960’s the performance management system entered the sphere of industry. At that time, it was concentrated on “financial measures such as traditional budgeting, costing, and variances analysis and cost volume profit” (Bourne et al. 2). Thus, it mostly dealt with the monitoring of the spending. Today such approach does not work properly. The nature of business has altered and shifted the focus of this system from the competitors of the organizations to their customers. If the company wants to be successful, it needs to provide the consumers with the products and services of the high quality. The more clients are satisfied, the more profit the organizations gain. Moreover, due to the globalization, the competitors within one area can be located anywhere. It is easier for companies to supply the costumers with what they need than to concentrate on every opponent. The traditional approach does not extend to long-term strategies and is claimed to have several shortcomings, which were recently improved. At the beginning of the 21 st century, the search for the most advantageous performance measurement system started. Various new systems were proposed to make the measurement of all aspects of business possible. Previously such aspects of reporting as “competence and knowledge, customer focus, and operational efficiency and innovation” were not identified (Zizlavsky 78). However, today they are of high value, and it was dec