We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Business performance management can generally be termed as a set of processes, which enable an organization to optimize its business performance (Asbjørn R, 1995). In essence, it is a framework used for organizing automating, as well as analyzing the methodologies metrics, process of business as well as the systems that business is driven to performance levels. Business performance management aids the business to be efficient in its use of finances human material as well as other available resources BPM process entails the consolidation of data and/ or information from different sources querying as well as analysts of the data information and implementing the results in practice (Mosimann et al, 2007).

It enhances producers through the establishment of better feedback loops. A continuous as well as real-time review enables the business to identify and eradicate problems at the initial stages before they grow. The forecasting abilities of business performance management aid the organization to undertake corrective action in time to achieve projections of earnings.

Business Performance Managemen TOPICS SPECIFICALLY FOR YOU

The forecasting aspect of the BPM is distinguished by a high extent of predictability that is normally employed to give response is the “what – if” situations. It is also very important in the analysis of risk as well as predicting and outcomes of merger and acquisition situations and then developing a plan to overcome potential problems

Business performance management offers an essential performance indicator, which enable corporations monitor efficiency of projects as well as employees against operational.


Even through most CEO’S value growth and rank it as then number one priority a majority of corporations do not however manage to sustain this growth in the long- term .in most cases growth is usually driven by mergers and acquisitions (Wade, D, 2001 ). The other primary method of enhancing growth is known as the organic growth.

This entails such a wide range of methods that companies employ in order to increase revenue that include customer satisfaction as well as new products and services. Even though there is no empirical evidence to show that most managers have opted for innovation as a sure way for continued and sustainable way of ensuring growth the number seems to be on the increase and with the challenges of its contribution as well as what it entails Towards growth.

Traditionally most CEO’s charged with the responsibility of ensuring growth through the process of innovation have encountered numerous risks, challenging and unpredictable path.

During the implementation of the business performance management program there are new challenges that may present themselves.

Goal alignment queries

The initial step involves determining what the medium as well as short term aim of the program ought to be then the business should identify its strategic goal(s) of the corporation will be met by the designed program. It should also relate to the vision/mission, eventually a hypothesis should be developed that would detail how the mutative in eventually seeks to enhance performance and/or results.

That is the strategic map of the corporation

Another aspect that would be considered is that of baseline queries. The present competency needs gathering information should be assessed. The business should ask itself it has the capacity to monitor important sources of information and the kind of data is being collected and in what way it is being stored. The statistical parameters of the data like for example how much random variation the data contain, how it is being measures.

Cost and risk queries:

The financial implications for any new business implementation should be approximated. It is imperative to evaluate the cost of the current operations as well as the increase in costs related to the business performance initiative. The business should assess the possibilities as well as the risk associated with the failure of the implementation of the new initiative. The evaluation of the risk should be transformed in to a financial metric and integrated within the planning.


As per the nature and to a large extent the name managing people as well as the process, it is usually recommended that internal personnel fulfill the management roles in the long-term future, so as to ensure continuity and acceptance. Within the initial stages of the implementation of the business process management, it would be prudent for the organization to hire external BPM experts as well as business process managers to aid in bring experience as well as transfer of knowledge from the external field to the corporation (Harrison-B, 2005). This should be very encouraged during the formative years of the BPM project initiation.

Recruiting and retention

The world over the labor offered by human beings is and will always be expensive to the customers with respect to fees and consultancies with respect to the cost of recruitment and retention. Although competition is certainly intense, the idea of giving people more money is and will not be the solution to the problems. In order to attract good personnel, the business has to ensure that

Customer and stakeholder queries

Establish who is bound to benefit from the initiative and who has to pay for it. Who holds a lot of stake in present procedure? What kind of customers and/or stake holds one bound to directly benefit from this particular business implementation initiative? Who is bound to directly benefit from it?


In order for the analysis of business data to be great use as a tool, it is imperative that the firm understands its goals as well as objectives. This above measure is carried out in order to understand the direction in which they want to the steer and progress the business. In aid of this business analysis key performance indicators are set up to evaluate the current state of the enterprise and provide a course of action to be taken.

There has been a tremendous increase in the number of firms wanting to speed up the process of making available data. This process has made data to be available within a 24 hours period and such necessitating automation and the use of information technology systems. In many instances business performance management refers to the use of various financial or non-financial metrics to evaluate the current state of the enterprise and to offer a remedy.

There are various areas from where top management analyses are sound to acquire knowledge if they implemented BPM: Customer related numbers, the numbers of newly acquired customers, the status of the already existing customers as well as attrition customers would enable the firm to effectively transact business with customers.

Business Process Management is an area where both management and information technology intersect, encompassing techniques, methods as well as tools to design, develop, enact evaluate and analyze business process of operation (Debevoise, N, 2007). The process involves human beings, machines, corporations, application, documents as well as other sources of information. Business process management involves operations carried out by corporations to manage in certain circumstances, to enhance their business processes (Wade, D, 2001 ) Even though such an objective is not very new, software tools referred to as business process management systems (BPM systems) have made it possible, faster and cheaper for such operations.

These systems of BPM monitor the execution of business process such that executives can analyze and alter processes in reaction to data instead of having just a hunch. Overall, business process management can be termed as a management model, which enables the corporations to manage their enterprise; processes just like any other assets as well as improve and manage them within that duration of time. Within a well established corporation scenario, good BPM systems enable the enterprises to contain everyday changes within business process as a result of competitive, regulatory as well as market challenges in such business processes without so much reliance on information technology departments.

This offers an even balance across business areas that are keen on avoiding every risk and exploit every single opportunity on their path through very active changes in their way to business, which are very limited by a very static, stable and often inflexible information technology infrastructure. There are five major categories of that constitute the business process management: design, execution, and modeling, monitory and optimization.

The first one which is process design entails such concepts like the capture of processes that are already existing and documenting them architecture in process map/flow, actors, alerts as well as notification escalations terms. The design of the processes should also document the standard operating procedures, agreements of service levels, as well as task hand over mechanisms; structure the processes that are “to be” encompassing the entire above process while ensuring that the right and efficient design is theoretically employed.

A good design ought to minimize the number of problems facing the company within the life span of the process developed. Alteration to the business processes, due to changes within the scope that an enterprise functions is still being researched on. However, a business process management software is ideally used to design, model, implement, monitor as well as optimize the man/woman to man/woman, human to machine as well as machine to machine work flows that enable business evolution processes much smoother and nearer to the regulatory, market, competitive as well as conformance challenges the business face.

The second category is that of process modeling that entails taking the design of process and introducing various cost resource as well as other constraints to establish how the entire process will function under various varying conditions. This category also entails running such scenarios like “what is analysis” on the processes. For instance, a business may be faced with the analysis of a situation of what if it had 70 percent of resources to perform the same task? Or that what if it wanted to maximize optimize its process so as to the particular job at 85 percent of the initial cost.

The business in this case will review the amount of resources it has at its disposal, optimize on them, while improving performance efficiently as well as productivity and at the same time cutting down on cots. For example, a wind tunnel test of an airplane or flights test to established amount of fuel that the aero plane will consume as well as the number of passenger capacity. The third category is that of process execution. T rationally, automation of processes involves the developing or purchase of a new application which executes the needed steps of the entire process. Nevertheless, in practical cases, the applications hardly execute all the envisaged steps within the process completely as accurately.

The other alternative approach is to make use of a federation of software as well as human intervention. A result of the complexity associated with the federation perspective, it is often very hard to document or process. This makes it difficult to alter part or wholesome change as well as improvement on the process. In response to these issues software has been developed which makes it possible for full business process as per the theoretical design to be defined through a computer language that is directly executable by the computer.

This system can either make use of services in applications that are connected to carry out business operations, or in instances when a process seem too complex to automate, it will inform human requesting input through a message. In comparison to either of the two processes approaches a direct execution of a process description is seemingly more straightforward and as such very easy to improve on. In spite of this, automation of a process needs very flexible as well as comprehensive infrastructure that will literally eliminate the thought and process of implementing these systems in a legacy information technology surrounding environment.

The fourth category involves the process monitoring. The monitoring process entails trailing of particular individual processes in order for their state to be seen easily as well as the provision of statistics linked to performance of a single or numerous processes. An instance of tracking involves being able to establish the status order of a customer order for example awaiting delivery, ordered arrived, payment of invoice among others. This would enable the business to identify the problems that exist within its operations as well as rectify these problems.

Besides, the information recorded can as well be obtained to aid in working with customers as well as suppliers to enhance the connected processes. For instance, the statistics are the evolution of measures on how fast a customers order is processed, the number of orders that were processed for example in the last fort night among many others. These measures in a way try to fit within three classes: cycle time, productivity and defect rate.

The extent to which monitoring is done is largely dependent on the type of information the business requires to evaluate as well as analyze and how the business needs this information to be monitored, in either real time or ad hoc. In this instance, business activity monitoring (BAM) extend as well as expend the design monitoring tools in business process management system. Within process monitory, exists a process known as mining, which refers to a collection of methods, techniques, as well as tools linked to process monitoring.

The objective of the process mining is that of analyzing event logs that have been obtained from the process through which monitoring and to make a comparison of them to an “a prior” process model. The process of mining enables process analysts to detect differences that arise between the prior model and the real (actual) process execution and to analyze any bottlenecks within the whole process.

The fifth category of Business Process Management life cycle is that of process optimization process optimization encompasses the retrieval of process performance information form either monitoring or modeling phase and then identifying the real or prospective bottle necks as well as potential rooms for cost cutting or such other improvements and finally applying the analysis enhancement in the design of the process and as such having a continuous value cycle of the Business Process Management.

Even though the original focus of Business Process Management was based on the automation of mechanistic approach of business processes, this has however evolved to integrate the processes that are human driven, where the human interaction occurs in either parallel or series to this mechanistic process. A regular kind is where particular steps within the business process that need human intuition or even judgment to be carried out are delegated to the desired members of a corporation. Numerous advanced kinds are in supporting the often-perceived complex interaction that exists between workers in carrying out a work group duty.

The Business Process Management can be employed to understand organizations via such expanded perspectives, which may not have been accessed to help organizations and present. However, not all operations can be effectively modeled and even some business processes are better not interfered with. The significance of BPM system lies not in very simple tasks or very complex ones, but in modeling processes where the most opportunity lies. In practical cases, most organizations usually begin a Business Process Management program with the aim to optimize an area that has been established as an area for improvement.


Asbjørn Rolstadås1995 Performance Management: A Business Process Benchmarking Approach, Springer

Burlton, R., 2001, Business Process Management, Indianapolis: SAMS

Business Performance Management Software, retrieved on, 2007-10-14


Debevoise, Neilson T, 2007. Business Process Management with a Business Rules Approach: BookSurge Publishing

John Jeston, Johan Nelis Contributor Johan Nelis, Thomas H. Davenport, 2006, Business Process Management: Practical Guidelines to Successful Implementation, Elsevier

Jörg Desel, Barbara Pernici, Mathias Weske, Jorg Desel, Barbara Pernici, Mathias Weske, 2004, Business Process Management: Second International Conference, BPM, Springer

Kugeler, M., & Rosemann, M, 2003, Process Management: Berlin: Springer.

Harrison-Broninski, K., 2005, Human Interactions: the Heart and Soul of Business Process Management. City: Meghan Kiffer Pr.

Mosimann, Roland P., Patrick Mosimann and Meg Dussault, The Performance Manager. 2007

 Wade, D., & Recardo, R. 2001, Corporate Performance Management; Oxford: Butterworth-Heinemann.

Share this Post!

Send a Comment

Your email address will not be published.