Three stages of Business Performance Management
The Three Main Activities
Each business performance management monitoring program utilizes three primary activities: selection of goals, consolidation, and intervention. Each activity works with the other to help create a more efficient process. This is an extremely dynamic system where each activity affects the other and they are all working together to help develop better business processes.
Selection of Goals
The selection of goals is actually an ongoing process that can be altered by the results that are achieved through intervention. The best place to start with any business performance management program is to set corporate goals and then determine the policies and methods that will be used to achieve those goals. Once the program is underway, the effects that changes have on the process will start to alter the goals. If a managerial decision helped to increase productivity, then it may be necessary to enhance the goal. The point of the goal is to give management a measuring stick to use when it comes to determining success.
The second activity involved in business performance management is information monitoring, also known as information consolidation. This is the part of the process where the data is gathered and the pertinent data is analyzed and used to develop a better way to do business. The list of metrics used to create the data varies by company and by project, but the data becomes a critical part of the performance management process.
Once the data has been reviewed, the management staff decides which measures to take to increase efficiency and profitability. These changes are charted and the effects they have go back into the information monitoring activity. It is critical that the adjustments made reflect the goals of the company. This can be tricky because the goals are not always financial. For example, if the goal is to improve employee job satisfaction by 20 percent, then the actions taken by management would not necessarily require a financial consideration.
The Considerations of Implementation
When a company designs a business performance management program, there are several considerations that have to be made. Not only is company productivity a consideration, but there is also concern for:
Will the goals of the business performance management program weaken the company and allow the competition to start taking more market share? How much risk is the company willing to assume to reach these goals? Before implementing a business performance management plan, a company has to think of how such a plan will affect every aspect of its business.
Regional Development, M. and W. (2021, February 15). Tips for writing a successful tender response. Business Queensland. https://www.business.qld.gov.au/running-business/marketing-sales/tendering/improve-approach/competitive/bid/tips.