Business performance management
Business performance management (BPM) focuses on optimizing your business performance through a set of processes. BPM works by collecting data, querying data, analyzing data and putting the results into practice. The forecasting ability BPM provides allows a company to take corrective measures to improve their earnings.
Creating a BPM program
Goals - Start by determining the short and long term goals of the program. How do the goals relate to the future of the company and the mission of the company? Also ask yourself how the BPM program will improve the performance of the company.
The Baseline Queries - All the current gathering information needs to be addressed and evaluated. What data is currently being collected and how are the results being stored?
Cost and Risk Queries - All the financial consequences need to be evaluated and estimated before implementing the new BPM program. Will the program save your company money? How do your current cost and risk queries asses your financial information?
Customer Queries - Decide who will benefit from the BPM program. Will this directly impact your customers and stakeholders? How will the BPM program benefit your customers and stakeholders? Can you track customer satisfaction?
Metric Queries - Decide what metrics you want to use for each piece of information that is collected. If you are currently using metrics, decide which ones are useful.
Measurement Methodology-related queries - When you are measuring metrics, you need to determine the best methodology to obtain results. Decide how frequently you would like the data to be collected.
Results-related queries - Your BPM program should be monitored to confirm that all the objectives you have outlined are being attained. You may need to make some adjustments in order to achieve the desired results. Your new BPM program should be tested often for reliability and accuracy.
When you have decided to implement a BPM program, you will need to evaluate some questions and determine how you would like to start your BPM program:
BPM software stores, shares, organizes, analyzes, and produces data in easy-to-use formats. The data you obtain from the BPM software will help you make correct decisions for business. Collecting data is one of the hardest aspects with BPM. BPM software provides a software warehousing feature that allows the company to store data that can be sent to the BPM program for evaluation.
In order for the BPM software to work, it must generate information. BPM software uses key performance indicators (KPIs) to determine what direction the company is going. KPIs are "a set of values used to quantify the performance of an enterprise". The KPIs are wonderful as they provide the tool BPM software needs to evaluate data.
The BPM software will create feedback loops from the data it collects and analyzes. The quick results you will receive from the BPM software will allow you to identify problems quickly and take corrective actions before the problems become worse.
Another great feature of BPM software is that it also can take current results to forecast the future. The "what if" queries will help the software to determine how to forecast future performance and find ways to increase your business goals.
With the high tech, fast-paced world of business, it is important to keep on top of your company. BPM programs will help you plan for the future, organize data, and utilize less of your resources. Use the value of your corporate data to increase your businesses agility and take control of your competitors.
BPM will give you all the necessary tools needed to develop effective strategies, understand and evaluate current performance, and drive your company into the future with a plan to succeed.