Enterprise performance is at the core of management focus today. More than just financial measures, quantitative and qualitative measures are a critical element of measuring success today. Measures and measurement systems are the foundation of returning value to investors and owners of an enterprise. As a result, the improvement of performance is one of the most significant tasks managers have in today's enterprise.
A key result of performance management is achieving a lean and more flexible enterprise that returns maximum results. Management uses various methods to achieve these results. Using scorecarding and dashboards is a concise way management uses to communicate its objectives, goals, and results.
For example, financial planning and budgeting process sets objectives and goals which are the basis of a more advanced management discipline and approach. But, this process is not enough to implement an operational performance improvement system today. What is needed is an effective and efficient way to achieve strategic and enterprise level improvement. A key component to the successful deployment of a performance measurement, management and reporting approach is the use of appropriate key performance indicators (KPIs). How is it achieved? It is achieved by the skillful use of performance measures and the presentation of these measures that communicates them to all the stakeholders in the enterprise.
Key benefits of developing a performance management system using this approach is:
- ability to evaluate the overall performance of the enterprise
- way to identify those key measures of for the enterprise
- means to integrate measures across the business
- gain key insights to strategic enterprise management
- understand and internalize business modeling for performance
- learn to develop and apply dimensionless measures
- distinguish between business intelligence and performance management
- manage performance data
- learn which parts of the business contribute most to performance
- learn where to apply the levels of investment in operations
- ability to effective communicate management objectives across the enterprise
