Business Process Performance Measurement
Business Process Performance Measurement
Performance Management and Measurement
In today’s hectic business activities, the management and measurement of business performance have become crucial. Both the activities need to perform with a good value of cooperation. The performance undergone a process should be analyzed frequently to record the deviation made in the process. Once the problem identified in the performance, the management process begins to control the circumstances resourcefully (Salem, 2003).
The article clarifies the difference between the two term management and measurement of business performance. A business leader with optimum knowledge can understand the terms as well as can take suitable steps to accomplish it (Salem, 2003).
Understanding Business process performance measurement
The measurement of performance in a business process has become an essential part of the modern business world. The effort invested in a business process supplies the reason for the success and failure of an organization. The cost invested in the process to manipulate it also needs a strong control to make the business process successful (Glavan, 2011).
The article helped in understanding the business process performance measurement basics to get a clear idea about the topic. A clear overview of the process is shown to understand at which stage of the process the performance measures are needed and their accountabilities. The diagram illustrated in the article shows a three step process to measure the performances (Glavan, 2011).
Areas of process performance management:-
Building process performance measurement system
To gain a leading position in the competitive world, every organization needs to engage their business activities in a systematic process. The business process needs to implement the system with appropriate performance and skill. The changing needs in the process always require a stabilized work network both manually and instrumentally. This situation pushed the organizations to build a systematic business process performance management system to facilitate the overall business network effectively (Kueng and Krahn, 1999).
The authors illustrated a three-step process in the article to build a systematic process performance management system; process design, business case execution and lastly process measurement and improvement. By using these three steps, the building activities can be done easily. The article demonstrates the sub-processes to execute the measurement system in a smooth way (Kueng and Krahn, 1999).
Key Performance Indicators(KPIs) in performance measurement
There are certain indicators that regulate the performance of a process. Choosing right Key performance indicators is a very complex task for the business leaders to execute. To identify the right KPIs, the measurement process should go through a systematic process, namely:-
Identifying a problem
Developing a view to forecasting the solution possibility of the problem
Developing a systematic process to accomplish the solution
Develop the effectiveness concept of the key performance indicators
Developing key performance indicators of stakeholders and finance department
(Baroudi, 2014)
The article demonstrates the usefulness of key performance indicators in the establishment of a sustainable business process. The effectiveness of the KPIs decides the success and growth of an organization. The detailed process to measure the KPIs should be reflected in an orderly manner (Baroudi, 2014).
Challenges in developing performance indicators
The development and measurement process of key performance indicators also opposed by several factors. As KPIs are the close factors of the mission and vision statement of an organization, the failure in measuring the KPIs impact the performance of an organization greatly. There should be certain guidelines in preparing the KPIs. The performance measurement should not be analyzed in excess that could affect the stability of an organization. As the KPIs are sensitive in nature, the development process shouldn’t be done in a hurry to accomplish the goals in a short time; proper time framework should be maintained (Popa, 2015).
The article suggests manipulating the performance measurement in a simple way without any over or under-attainment of measurement. The article focuses to explain the negative side of KPIs if they used excessively. The organization should be aware of the outcome of the situation clearly (Popa, 2015).
References List
Baroudi, R. (2014). Key performance indicators. Performance. Vol. 6, Issue 2.
Glavan, L. M. (2011). Understanding Process Performance Measurement Systems. The university of Zagreb. Vol. 2, No. 2, pp. 1-56.
Kueng, P. and Krahn, A. J. W. (1999). Building a process performance management system: Some early enterprises. Journal of scientific & industrial research. Vol. 58, pp. 149-59.
Popa, B. M. (2015). Challenges when developing performance indicators. Journal of defense resource management. Vol. 6, Issue1.
Salem, H. (2003). Organizational performance management and measurement. Economic and social council.