Introduction to Business Performance…

14 Jan

It is well known within the business world that the most successful companies today are those that deliver the right product or service in a faster, more efficient and cheaper way then their competitors. Business performance is a recurrent theme for most areas of management and in order for an organisation to run smoothly and successfully all areas of the business must be performing well and reaching its full potential.

“Business performance  management entails reviewing the overall business performance and determining how the business can better reach its goals. This requires the alignment of strategic and operational objectives and the business’ set of activities in order to manage performance. Because business performance management seeks to aggregate available information, managers are more informed about the companies position and are able to make better decisions”.[1]  Simply put it “relates to the business’ independent criteria to assess its overall outcomes, in relation to its own goals.”[2]. Every organisation, no matter what type of business they are, need to measure how well their business is performing to ensure its survival and to maintain its market position.

Reviewing and assessing the business performance of an organisation is essential for any business if:

  • “They are uncertain about how well the business is performing.
  • They are unsure if they’re getting the most out of the business or making the most of market opportunities.
  • Their business plan is out of date.
  • Their business is moving in a direction different to the one they had planned.
  • The business is be becoming unwieldy or unresponsive to market demands”. [3]

The following diagram shows a typical business performance management system. It starts with the ultimate goal and with the mission of the organisation. Eventually all the business units, teams and individuals align with the strategy to achieve results. [4]

Performance-Review

 

“Looking at the firm as a complex organism seeking to survive or thrive in its competitive environment, performance measurement systems serve as a key contributor to the perceptual and coordination/control capabilities of the firm”.[5] It is clear now that the management and measurement of a companies business performance is extremely important in order for them to succeed in competitive markets today.

[1]. http://www.businessdictionary.com/

[2]www.qmu.ac.uk/aetc/support/glossary.html

[3]. http://www.infoentrepreneurs.org/en/guides/review-your-business-performance/

[4].http://bizcubic.com/knowledge-base/transforming-data-into-knowledge-with-business-performance-management-system/

[5]. http://www.kellen.net/bpm.htm

 

 

 

 

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