Business Performance Management- A Constantly Misunderstood Concept

After browsing a few articles on BPM, I came across one that really caught my attention. Failures in Performance Management by Dalmeny Close gave me a better understanding of how so many businesses can suffer at the hands of their managers. One well-known cause of poor BPM we learned from class is the usage of improper metrics. This means implementing measurement tools as incentives for rewards, that end up being detrimental to the business.An example is awarding customer service centre employees for their number of calls. In the end they will take more calls, but satisfy the customers less than they were satisfying them before.  I learned from the article some other key points to successful BPM. The list includes:

  • Making sure the employees share the same objectives of the business
  • Making targets clear and understandable
  • Providing updates on progress towards goals
  • Creating feedback loops
  • Providing a way for managers to have their own performance reviewed
  • Remembering that your staff are only human
  • Make sure your managers are competent and self-reflective

 

 

 

The valuable part of performance management is it can be applied to many areas other than business. Every organization needs proper performance management to help achieve their goals.

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