Business Performance: Performance Management Systems

7 Feb

As ncooney1 has mentioned previously, models and frameworks for building Business Performance Management systems have become common place in today’s business environment. Mark Graham Brown, a professional with thirty years experience in the Performance Management industry, believes a performance management system is comprised of six components. The six components are (1) A Plan (2) Resources (3) Metrics (4) Review and Analysis (5) Actions and Strategies (6) Consequences. He gives the following brief explanation for each component:

(1)    “ A plan with key strategies to meet the goals and objectives set out. It is believed that this might be a more longer-reaching strategic plan or a shorter-term operational plan [1].

 

(2)     He describes the resources component as including a budget, skilled staff, tools, technology, facilities and other resources that will help the organisation’s overall performance [1].

 

(3)    The metrics are linked to both strategies for the future and operational success. These metrics might be referred to as Balanced Scorecards, Key Performance Indicators, a scorecard, a dashboard, or all of the above [1].

 

(4)    As is the case in any review and analysis phase of a project, the processes need to exist for regularly reviewing and analysing performance data to identify opportunities for improvement and dissecting of problems, thus, providing business intelligence [1].

 

(5)    Actions and Strategies, these include projects or initiatives designed to improve or maintain various areas of performance. These also need to be monitored on a regular basis to determine if actions are producing the expected results [1].

 

(6)    Consequences, in other words systems of rewarding and recognizing achievements of goals, objectives and performance targets. He believes to be effective, consequences need to be personal, powerful, and clearly linked to performance [1].  ”

 

Effectively managing and measuring performance is crucial for an organisation. It’s important to look at the big picture and measure your performance against your competitors. The same can apply when it comes to IS investment, an organisation needs to measure and continuously monitor the IS investment’s effectiveness toward improving the organisation’s overall performance.

 

References:

[1] http://businessfinancemag.com/article/performance-management-any-other-name-still-works-same-1008?page=0%2C0

 

2 Responses to “Business Performance: Performance Management Systems”

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  1. Leadership Thought #425 – 10 Ways To Ensure Your Business Success As A Leader | Ed Robinson's Blog - February 26, 2013

    […] Business Performance: Performance Management Systems (sopinion8ed.wordpress.com) […]

  2. 10 Ways To Ensure Your Business Success As A Leader - August 22, 2014

    […] Business Performance: Performance Management Systems (sopinion8ed.wordpress.com) […]

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