Business performance management – what is it about?
Business performance management entails the development of a streamlined performance management system that cascades the strategic objectives – i.e. must-win battles – down through the organisational layers by highlighting relevant performance metrics at each respective level.
In achieving this, organisations need to establish:
- A solid technical infrastructure to transform data into performance insights that can be made easily available to the relevant stakeholders across the organisation.
- A proper performance governance structure to ensure that performance insights lead to actions that move the organisation towards their strategic objectives.
A key challenge related to the implementation of a good business performance management system is that many companies struggle to define a balanced setup comprised of both leading and lagging indicators anchored in organisational behaviour. It is no easy task to create a link between strategic objectives, desired behaviour and key performance indicators in a way that will move the organisation in a common direction.