| What is it? | | | | project is working or not. |
| Business Performance Measurement (BPM) is vital for | | | | 3. Understanding why the initiatives that are not |
| the success of an ongoing concern and, hence, the | | | | working have failed. This helps you improve on and |
| use and demand of Business Performance | | | | rework your action plan. |
| Measurement systems have been spiraling over the | | | | How does it help? |
| past couple of decades. In an organization, each | | | | Every company is striving to survive and thrive in a |
| person in the management team has a different | | | | highly competitive market. For this reason, the firm |
| perspective of looking at performance and different | | | | needs a system that can help it either create an |
| yardsticks for success for you company. This | | | | edge over others or maintain its edge in the market. |
| presents you with a hazy picture of company | | | | This is where Business Performance Measurement |
| corporate health, with some data depicting growth | | | | systems come in. Some uses include: |
| and others showing a downfall, ultimately preventing | | | | |
| you from making the correct decisions at the right | | | | 1. Monitoring and controlling specific activities |
| time to boost performance. Business Performance | | | | 2. Predicting future internal and external company |
| Management, on the other hand, gives you an | | | | growth |
| accurate picture of where to fine tune your | | | | 3. Initiating timely and strategic growth enhancing |
| operations in order to maximize growth and attain | | | | decisions |
| strategic corporate goals. | | | | 4. Maximizing the effectiveness of measures |
| What does it involve? | | | | 5. Balancing profit, growth and control |
| Typically, performance measurement helps a business | | | | An in-house team might not be the best way to get |
| identify goals and targets for the short term or the | | | | accurate Business Performance Measurement data. |
| long term and then involves providing feedback to | | | | Recognize that this data is crucial to your future plans |
| managers on the progress made towards these | | | | and you might consider obtaining professional help to |
| goals. BPM, however, helps you measure this | | | | reviews your business pulse, provide honest analysis |
| performance relative to some benchmark and | | | | and prioritized recommendations, while helping you |
| enables you to improve control over the firm in ways | | | | maintain your focus on critical management tasks. |
| that traditional accounting systems do not. Business | | | | Whatever you decide to do, it is key that you |
| Performance Measurement involves: | | | | actually do something. The key to making your |
| | | | initiative successfully is to start somewhere, learn |
| 1. Monitoring business actual progress toward your | | | | cheap on mistakes, gain some cheap victories and |
| set targets | | | | then move forward to the champagne version. |
| 2. Measuring the efficiency and effectiveness of | | | | Bottom line? - Risks are what really go wrong when |
| measures that you have initiated to achieve your | | | | you are not looking: stupid things like bounced |
| target or goals. This aspect of business performance | | | | checks, losing your best customers or best people |
| measurement includes gauging whether an initiative or | | | | when you are blindsided. |
