There is no denying the crucial role of data in the routine of a successful business. Business insights not only help in making better decisions but also make your operation more resilient. That is what Business Performance is all about .
In practice, we are talking about an extremely broad concept, involving various tools, methods and disciplines that aim to use technology and data for better business performance.
How about learning more about it? In this content, we explain everything about Business Performance and the importance of applying this concept. Check it out!
What is business performance?
Business Performance is a set of processes, tools, methods and good management, strategic and analytical practices that allow a better understanding of the business, its market and its customers, leading to better results.
This is a broad concept that has different understandings around the world, especially due to nomenclature.
Today, scholars of the subject are accustomed to the term “ Business Performance Management ” (or BPM, although the acronym is the same as business process management), which we will explain later.
Gartner consultancy previously used to define this concept as Corporate Performance Management (CPM).
“ Corporate Performance Management (CPM) is a comprehensive term that describes the methodologies, metrics, processes, and systems used to monitor and manage a company’s business performance. CPM-eat applications translate strategically focused information into operational plans and deliver aggregated results .”
But today, according to Gartner’s own 2017 article, the concept has croatia whatsapp data been redefined as “ Financial Planning and Analysis” (FP&A).
“ Financial planning and analysis (FP&A) is a set of four activities that support the financial health of an organization: planning and budgeting, integrated financial planning, management and performance reporting, and forecasting and modeling. FP&A solutions enhance the finance department’s ability to manage performance by linking corporate strategy to execution .”
Although this last concept is “new”, it has a clear focus on the financial aspect of the business.
Here, we can define Business Performance as a discipline that basically seeks to improve the strategic and operational performance of the company. All of this with the use of data analytics.
At the same time, we can say that Business Performance has a very close approach to the culture of innovation and Business Intelligence.
What is the importance of Business Performance?
The importance of Business Performance lies in its very name: it allows companies to find ways to improve their performance so that they achieve their goals and objectives.
This is the organization's ability to understand the points of improvement in its operation and successfully implement optimizations.
In this way, it is possible not only to improve your process management, but also to align with customer expectations and increase their satisfaction.
What are the pillars of Business Performance?
Business Performance seeks to assist in well-informed, data-driven decision making. To do so, there are some pillars that can be defined as:
Goal setting
It is necessary to think about objectives and goals in a healthy and broad way, involving both the short, medium and long term.
The example of smart goals is a good starting point.
Goals should be realistic and take into account the business's trajectory.
This means that they are not always related to the financial aspect of the operation, but may involve environmental, social and governance issues.
That's what the Balanced Scorecard seeks to measure, by the way.
Consolidation of information
Information consolidation, also known as information monitoring, is the collection of business data.
This activity provides important information for the management team to evaluate and guide decision making.