Business Performance Management (BPM) may come with a lot of different names such as Operational Performance Management, Corporate Performance Management or Enterprise Performance Management but all of these mean the same thing, which is a set of processes that aim to drive business performance through careful analysis, organization and automation of business methodologies, metrics and systems. It is also seen as a business strategy to help companies make optimum use of resources (i.e. human, material) to produce goods and services in a more timely and efficient manner.
Now, how can companies measure performance? There are a lot of practices that are being used nowadays to help companies determine the efficiency of a project and its employees. One of these is through the use of a balanced scorecard, wherein certain pre-determined metrics, sometimes referred to as key performance indicators (KPI’s), are being established to assess the present state of business operations. The actual performance is then scored against operational targets and collected results will be evaluated further to determine the best course of action thereafter.
BPM can be used in a lot of different areas of the business. Some of which include the following: (a) Customer subscription, retention and attrition; (b) Campaign Management; (c) Call center metrics; (d) Marketing channel analysis; (e) Real-time dashboard; (f) Clickstream analysis; (g) Collection of bad debts; and (h) Demographics analysis. As clearly indicated by the abovementioned areas, BPM integrates business processes with Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP) to be able to influence customer trends, gauge customer satisfaction and control shareholder value.