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Get Ready: Steps To Follow For Performance ManagementGet Ready: Steps To Follow For Performance Management
Before a business' performance can be optimized, a company strategy must be planned and in place. Planning includes many elements, such as the tools used for support and development.
2 Min Read
To avoid confusion, companies looking for a complete performance- management solution should embark on the following:
Planning. Before a business' performance can be optimized, a company strategy must be planned and in place. Planning comprises many elements, not the least of which are the analytical tools used for supporting and developing plans.
Some examples of planning tools include budgeting, forecasting, strategic cost analysis, and partner-relationship analysis tools that let business decision makers evaluate detailed information in aggregate to decipher trends and build plans. The challenge lies in aligning the underlying and related projects to the overall plan.
Tracking. Once a company strategy has been designed, it's important to create and manage metrics that will identify how well related projects are helping to meet the strategy. Business-intelligence software excels at tracking--applications do a great job of gathering and comprehending underlying data.
The real value comes from a business-performance management application that provides the business-intelligence back end with the overlying strategy metrics. Tracking ensures that business decision makers are able to recognize when and how well the strategies are met, as well as how well the underlying projects are performing.
Analysis. Whereas tracking is focused on collecting present data, analysis tools provide a view into historical data. Analytical tools give the business decision makers the opportunity to evaluate how well the projects have gone and how well they have supported the company's overall goals. The value of analysis tools lies in their ability to support decisions for tweaking both individual projects and general business strategies.
All three of these elements must work together to ensure that business-performance efforts are accurately managed. That, in turn, will enable the following:
Projects and tactics align with business goals.
Risks are foreseen and averted.
Performance measurements are done quickly, and accurate decisions are made in real time.
Opportunities for improvement are identified continuously, not only at the project or departmental levels but throughout the company.
Illustration by James Kaczman
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