Nowadays there is a need for business enterprises to measure, analyze and improve performancernas they encounter increasing competition from an ever-changing business environment.rnPerformance is the valued productive output of a system in the form of goods and services andrnperformance measures are the lifeblood of organizations, since without them no decision can bernmade, as it is the first step to control and improvement. Though the Government of Ethiopia isrnpromoting the leather footwear industry as a priority area and the sector has a huge potential forrndeveloping an economy, its performance is unsatisfactory due to external and internal problemsrnthat hinder its competitiveness. Thus, the aim of this study is to assess and evaluate performancernmanagement practice of Ethiopian Leather Footwear Factories, identify critical problems andrnpropose a firm level total performance improvement method and suggest roles of stakeholders orrnimprovement directions towards the external problems. To undertake this research, primary andrnsecondary data are collected through a survey questionnaire, interviews (in the form ofrndiscussion) and physical observation in the case factory, as well as referring previous researchrnworks and case company records. To analyze and present the data, pie charts, bar graphs, andrndiagrams are used. In addition, to see the performance gap of the case factory, benchmarking isrndone. From the research, it is concluded that the leather shoe factories have both internal andrnexternal problems resulting in low performance and competitiveness. To alleviate the internal orrnfirm level problems, a total performance improvement method called Total PerformancernScorecard (TPS) is proposed. In addition improvement directions are forwarded towards thernexternal or sector level problems. Regarding the proposed method, a performance measurementrnframework/scorecards and its implementation guideline is developed for Anbessa S.C. TPS is arncombination and also an extension of the concepts BSC, TQM and Competence Managementrnwhich is being defined as a systematic process of continuous, gradual and routine improvement,rndevelopment and learning. The process focused on the solid increase of both the personal andrnorganizational performances. This method has an important aspect in maximizing therninvolvement and loyalty of all involved persons, as well as encouraging individual and teamrnlearning and creativity via its Personal Balanced Scorecard (PBSC).