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Business Performance Management (A Closed-loop Process to Optimize …
Business Performance
Management
Business Performance Management (BPM) refers to
the business
processes, methodologies, metrics,
and technologies
used by enterprises to
measure, monitor, and manage
business
performance.
A Closed-loop Process to Optimize
Business Performance
Process Steps
Strategize
Plan
Monitor/analyze
Act/adjust
Performance Measurement System
A system that assists managers in tracking the
implementations of business strategy by
comparing actual results against strategic
goals and objectives
Strategy – strategic objectives
Targets – measures performance against specific targets
Ranges – targets have performance ranges (above, below target)
Encodings – ranges are encoded in colours (e.g. red, green
yellow) for visual displays
Time frames – targets are assigned time frames by which they
must be achieved
Benchmarks – targets are measured against a baseline or
benchmark
• Key performance indicator (KPI)
represents a
strategic objective
and metric that
measures
performance against a goal
(eg. 25 new customers
per month)