If a company is running well and making profits, then chances are that the senior executives are well acquainted with business performance management. They may not have a technical definition of the concept but will have acquired the knowledge and skills to apply it practically within their areas of responsibility. There are a number of related terms that have been used to explain business performance management (BPM).

These include but are not limited to operational performance management (OPM), business performance optimization (BPO), corporate performance management (CPA) and enterprise performance management (EPM). Despite the difference both operate on one principle which attempts to increase the efficiency and profitability of the organization right up to the optimum level.

In order to achieve this aim, the organization has to muster all its resources whether it is human capital or technology aids with the overriding aim of reducing costs, increasing output and growing profits. The challenge is getting all departments to understand their work in times of increasing efficiency and profitability. Many of them will have vested interests and their own agendas. The institutional culture that you have encouraged in your company will also have an impact in terms of the extent to which staff members are willing to join your efforts at performance management.

Evidence shows that performance management process does go hand in hand with change management. In order to prioritize the company’s core objective, there will have to be significant period of organizational change. Where there is change culture resistance is not far off. It will take a lot of work to get the whole organization to work in sync. The larger the organization the greater the complexity of effecting change.

Performance management by its very nature seeks to create minimum performance standards. It can create rewards and sanctions depending on the level of compliance. The strategic nature of its operations means that it often takes precedence over the day to day routine. It also creates a fear of management as people may believe that their jobs are being restructured and will eventually disappear from the payroll.

Performance management is a process and not just an incident. It is imperative that there is a continuous assessment in order to ensure that the changes and performance standards are not a one-off administered in haste but part of a well planned strategy to improve performance. Staff members should be encouraged to record the results of their own work and review their own performance in line with the standards that have been set.

There is always a risk that business performance management is created and supervised as a top-down activity. This is an approach that is likely to attract the stiffest resistance from members of staff who may feel that they are being dictated to by management. Rather efforts should be made to ensure that even the lowest employee believes that performance management is in their best interests. If they are to do well then the rewards will go to them in terms of promotion and better conditions.