The industrial strategic development plan of Ethiopia gives great emphasis to improve export-ledrnproducts to join the international market in a large scale. The strategy also promotes capitalrnsaving and labor-intensive industrial development policy using coordinated approach (jointrnforum) of supply chain management to encourage the production of value-added products. As arnpredominantly agricultural economy with the largest cattle population in Africa, Ethiopia has arnstrong base for semi-processed leather, finished leather and leather products. So Ethiopiaâ€™srnleather industry is in the forefront of the leather sector development within the Eastern andrnSouthern African region. The recent export development strategy introduced by the governmentrnhas give priority and incentive schemes for this sector. However, the challenge is how to makernbest use of the countryâ€™s revealed comparative advantage to build a dynamic and competitivernsector that contributes to Ethiopia's economic growth.rnSince tanning sub-sector has a great potential for rapid development of Ethiopian leather sector andrneconomic growth of the country, performance improvement of Ethiopian tannery industry needed.rnTherefore, the aim of this thesis is to assess performance measurement and improvementrnpractices, determine key performance improvement areas, and make proper recommendation andrnformulate performance measurement and improvement model for Ethiopian tannery industriesrnand case company.rnThis research paper reviews worldwide researches that related with performance measurementrnand improvement. It has been conducted in a sample of eleven Ethiopian tannery industries andrncase company by using a well structured survey questions, interviews, personal observation, andrnsecondary data collection. The results from this research assure that the major performancernproblems of tannery industries are shortage of raw materials, low skill of workers, machineryrnbreakage, poor resource planning, poor customer and supplier relations, and poor performancernmanagement. Depending upon the research findings, performance measurement andrnimprovement model with its implementation steps is recommended as a solution.