Business Performance Management
If you're considering improving the processes and procedures in your company to model them against perceived best practices then using business performance management or BPM tools may help you.
Certain tools enable you to have a company Dashboard of statistics and key performance indicators so you know at a glance how you are performing against certain targets and business criteria.
What's it all about ?
There are a lot of acronyms being tossed around these days that are supposed to help you not only analyse your business needs, but push higher levels of performance from just about every staff member you have and one of the more popular and better regarded of these options is Business Performance Management or BPM.
While business performance management comes in many different styles and under many different names, the results are often the same. A good BPM setup consists of multiple systems that help to optimise a business for better performance. It helps businesses create a structure to organise, automate, and analyse the different methodologies, processes and metrics that are currently in place. Essentially, anything related to the overall performance of your business is included in BPM.
Reasons for Business Performance Management Tools
The primary reason most businesses turn to BPM software and methodologies is help them create a more efficient and better run business. Millions of business owners out there are confronted with issues each day that can be completely avoided. But, before they can be avoided, that business needs to recognise where issues exist and how they affect the rest of your company.
Whereas Business Intelligence or BI is designed to provide analytics on how a business operates so that you can create goals and monitor those goals, BPM provides the actual concepts needed to integrate a feedback loop that helps you actually achieve those goals. One is a tool, while the other is a class on how to use that tool. It's important for any business looking to improve their performance over a number of different areas to understand exactly what they are doing.
Problems of the Past
Over the years, business owners have pushed most of their strategies through top-down implementation, hoping to spread new ideas to every corner of their business. As a result, they've struggled to actually turn those strategies into metrics that can be acted upon. Obtaining useful analysis that would allow them to understand the cause and effect relationship between the different areas of their business was hard. As a result, the valuable data that comes from such analysis was missing. Decision makers were left without the tools needed to target areas in which profit could be increased.
Today, business performance management software has created a viable route to integrating the different aspects of a business's strategies and its processes. In short, the company is better able to analyse what they are doing from multiple perspectives and craft strategies that are directly related to measurable analysis. Instead of essentially "guessing" what to do next, business leaders can make decisions that should have tangible results and, if they do not, they can analyse the reasons for that failure.
Business performance management is still catching on with small and medium sized businesses. Many owners and managers feel that their own insights offer everything they need. However, there is something inherently valuable in receiving calculated, cold analysis of your business's operations. Combining that with your insights will lead to much better, and more focused decision making.