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Business performance management

Business performance management (BPM) (also known as corporate performance management (CPM)[2] enterprise performance management (EPM),[3][4] organizational performance management, or performance management) is a management approach which encompasses a set of processes and analytical tools to ensure that an organization's activities and output are aligned with its goals. BPM is associated with business process management,[5] a larger framework managing organizational processes.

"Performance management" redirects here. For performance management of software in real time or forensically, see software performance management.

It aims to measure and optimize the overall performance of an organization, specific departments, individual employees, or processes to manage particular tasks.[6] Performance standards are set by senior leadership and task owners which may include expectations for job duties, timely feedback and coaching, evaluating employee performance and behavior against desired outcomes, and implementing reward systems.[7] BPM can involve outlining the role of each individual in an organization in terms of functions and responsibilities.[8]

Application[edit]

Performance-management principles are used most often in the workplace and can be applied wherever people interact with their environments to produce desired effects, such as health settings.[11] How performance management is applied is important to get the most out of a group, and can improve day-to-day employee performance. It must not encourage internal competition, but teamwork, cooperation, and trust.[12]


Performance management aligns company goals with those of teams and employees to increase efficiency, productivity, and profitability.[13] Its guidelines stipulate the activities and outcomes by which employees and teams are evaluated during performance appraisal.[14] Many types of organizations use performance management systems (PMS) to evaluate themselves according to their targets, objectives, and goals; a research institute may use PMS to evaluate its success in reaching development targets.[15] Complex performance drivers such as the societal contribution of research may be evaluated with other performance drivers, such as research commercialization and collaborations, in sectors like commercial agriculture.[16][17] A research institute may use data-driven, real-time PMS to deal with complex performance-management challenges for a country developing its agricultural sector.[18][19]


Werner Erhard, Michael C. Jensen, and their colleagues developed a new approach to improving performance in organizations. Their work emphasizes how constraints imposed by one's worldview can impede cognitive abilities, and explores the source of performance which is inaccessible by cause-and-effect analysis. They say that a person's performance correlates with their work situation, and language (including what is said and unsaid in conversations) plays a major role. Performance is more likely to be improved when management understands how employees perceive the world and implementing changes which are compatible with that worldview.[20]

Public-sector effects[edit]

In the public sector, the effects of performance-management systems have ranged from positive to negative; this suggests that differences among systems and the context in which they are implemented affect their success or failure.[21][22]

Organizational development[edit]

In organizational development (OD), performance can be thought of as actual versus desired results; where actual results fall short of those desired is the performance-improvement zone. Performance improvement aims to close the gap between the two.[24]


Other organizational-development definitions differ slightly. According to the U.S. Office of Personnel Management (OPM), performance management is a system or process in which work is planned and expectations are set; performance of the work is monitored; staff ability to perform is developed; performance is rated and the ratings summarized, and top performance is rewarded.[25]

Financial performance, such as profits, return on assets, and

return on investment

Product market performance, such as sales and

market share

Total shareholder return, added, and similar

economic value

Technology[edit]

Business performance management requires large organizations to collect and report large volumes of data. Software vendors, particularly those offering business intelligence tools, offer products to assist in this process. BPM is often incorrectly understood as relying on software to work, and many definitions suggest software as essential to the approach.[30] Interest in BPM by the software community may be sales-driven.[31][32]

Behavioral systems analysis

Data visualization

Electronic performance support systems

Executive information systems

Integrated business planning

IT performance management

List of management topics

Operational performance management

Organizational behavior management

Organizational engineering

PDCA

Performance measurement

Rosabeth Moss Kanter

(a.k.a stack ranking)

Vitality curve

and particularly StratML Part 2, Performance Plans and Reports

Strategy Markup Language

Plug-In T12 Business Process

http://www.sci.brooklyn.cuny.edu/~firat/mis/PlugInT12.pdf

. BusinessWeek. Bloomberg L.P. 2006-02-13. Archived from the original on February 9, 2006. Retrieved 2010-02-22.

"Giving the Boss the Big Picture: A dashboard pulls up everything the CEO needs to run the show"

Business Finance: (July 2009)

Bred Tough: The Best-of-Breed, 2009

Defining success through strategic planning and priority goal setting

The Balanced Scorecard

Organizational Performance Management