Managing business performance is everyone’s everyday job. You could argue that making sure the business is performing well is THE job of any manager. The challenge is that there are many different tools available to mange business performance, here I want to look at 10 popular BPM tools that every manager should know.
1. Planning and budgeting
This is probably the most widely used BPM approach in businesses by which plan ahead and set budgets for the following year. This is traditionally done annually where organisation set goals for the next 12 months and negotiate a budget to achieve the goals.
2. Key performance indicators (KPIs)
KPIs are the navigation instruments that companies use to understand whether they are on track or veering off the prosperous path.
3. Balanced scorecard (BSC)
The BSC is another popular management tool that has been designed to articulate the strategic objectives of a business and then align performance measures and action plans to these strategic objectives to ensure the strategy gets executed.
Companies use benchmarking to compare their own performance with those of others. Benchmarking is traditionally seen as comparing your own performance with external best-practice performance (where best practice performance can come from outside the sector or industry a company operates in).
5. Business excellence model
The business excellence models come from the quality movement and have been developed by national bodies to assess quality standards in companies. There are various national standards that are often used as the basis for quality awards.
6. Enterprise risk management (ERM)
ERM represents a set of tools and approaches to identify, assess and manage corporate risks. While risk management started its life very much as an internal control back-room function, today it has moved up onto the boardroom agendas of most businesses.
7. Six sigma
The six sigma is a tool that was pioneered by Motorola in the late 1980s and later adopted very successfully by global giants such as General Electric and Honeywell as well as many other companies of various sizes.
8. Performance dashboards
Most organisations today are bursting with data, metrics, reports and analyses. Dashboards provide single-page at-a-glance overviews of areas of performance (eg corporate overview, sales, finance, HR, business units, etc).
Most companies want to make sure they not only have satisfied customers but that they turn their customers into profitable and loyal customers.
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