In this paper, the effectiveness of a simplified characterization method for permanent magnet machines is evaluated through performance sensitivity analysis. Performance sensitivity analysis is a novel way to evaluate the effectiveness of any identification method, as it investigates the effects of parametric errors upon the output performance of a machine. Parametric errors are due to inaccuracies during the identification process. This evaluation tool was validated using a 10-kW SmCo interior permanent magnet machine characterized using two different identification methods. A detailed identification procedure is used as the basis for evaluating a simplified method. The performance experimental data were collected using torque controllers based on the parameters extracted with both approaches. This information is used to perform the sensitivity analysis over the operating range of the machine. Finally, the results are compared and analyzed to determine the effectiveness of the simplified characterization method and its implications on the control performance.