Posted by Melda Research on February 7th, 2019
The Business performance management process is a critical aspect of businesses that plans, measures and monitors the alignment of strategic and operational goals and as well as its set of activities to manage performance (Hammer, 2010). There are numerous reasons for the execution of business performance management process in a business. Among other factors, the business performance management process establishes a system for measuring the results of the financial and operational plans. These are set milestones that provide guidelines for the performance of a business. Another reason for application of business performance management is the provision of continuous improvement through intermittent strategic appraisal (Hammer, 2010). Business performance management allows the administration of a business to assess individual and workforce performance and gather relevant data for later use. It uses the information acquired from performing analysis to make appropriate modifications in the financial and operational indicators and ultimately facilitate improved performance. Furthermore, business performance management establishes the financial and operational plans a business should execute to initiate success in its operations. Business performance management assists a business identify and reward managers and employees whose activities help it accomplish the company’s strategic goals (Melchert & Winter, 2004).
A business can adapt and effective business performance management for use at all levels within the organization. There are several significant steps in the implementation of a business process management. First and foremost, a business must create an appropriate business strategy (Melchert & Winter, 2004). This step of business performance management clarifies the objectives of the prospect or a particular project. It includes the entire information about the business process like what is the expected outcome, who are the stakeholders, the milestones, and others. Secondly, the business will design appropriate business processes and set up the appropriate organizational structures and protocols (Melchert & Winter, 2004). Before the implementation of the business performance management process, the administration of an organization takes to account the objectives of the organization and develops a plan for implementation. The information used for the plan includes that obtained from appraisal as well as forecasts made of expected outcomes. Finally, the business establishes or adapts information systems according to the business specifications (Melchert & Winter, 2004). These information systems facilitate business performance management processes and should be complementary to a specific set of activities in the business.
Companies will execute business performance management processes because they are productive. Organizations consider performance as the capability to achieve its strategic objectives. Business performance management processes offer appraisal techniques and procedures that assist the administration of the business identify flaws that derail its performance (Trkman, 2010). The administration makes amends to these flaws; therefore, allowing the business to meet its objectives. Moreover, business performance management assists an organization identifies areas for improvement that increase the productivity of the business (Chaffey & White, 2010). Business performance management monitors the business processes critically thus reducing the overhead costs incurred by the organization. The scope of business performance management transcends to the employee behavior. It monitors aspects like motivation levels, ethical standards and other factors that might affect the productivity of the business. The administration of a business utilizes the information accrued from appraisals performed to develop strategies that can improve their productivity (Trkman, 2010).
Chaffey, D., & White, G. (2010). Business information management: improving performance using information systems. Pearson Education.
Hammer, M. (2010). What is business process management?. In Handbook on Business Process Management 1 (pp. 3-16). Springer Berlin Heidelberg.
Melchert, F., & Winter, R. (2004). The Enabling Role of Information Technology for Business Performance Management. Decision Support in an Uncertain and Complex World: The IFIP TC8/WG8.3 International Conference page 535-546
Trkman, P. (2010). The critical success factors of business process management. International Journal of Information Management, 30(2), 125-134.
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Joined: January 25th, 2019
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