Business Performance Management: Learn the keys to modern management

Business Performance Management, also just called Performance Management, is scoped with the management of business activities so that your goals are always being met efficiently and effectively.

In fact, Performance Management is classified according to its objective, for example:

Another way of looking at business performance management is to use it for the management of processes, products, and services.

In this text, we describe the key features of the management model and also the use of human resources departments that usually perform it.


See also: Increase your performance by improving your business processes


Business performance management: a contemporary alternative

In the past, management models took into account previous results, both of finances and production, among others, to project future performance and conditions.

Today, a modern business performance management system allows you to track in real time what happens in the company, bringing agility to the decisions and the possibility of quick adjustments to achieve goals more efficiently and effectively, reducing costs and increasing profitability.

Another important aspect of business performance management is to enable continuous improvement of processes through the management of activities to make it easier:

  • To evaluate
  • To monitor
  • To control
  • To plan
  • To improve

The extreme competitiveness, new markets and globalization have brought challenges for companies, which can only be answered with agile, flexible and innovative management, here are some of the challenges to be overcome:

  • More complex operations.
  • Increased risk and uncertainty.
  • More demanding consumers.
  • Globalized competition.
  • Valuing people and knowledge.
  • The constant need for innovation.

In this context, the use of information in business management technology has become indispensable. And a BPM system offers an effective response to these demands.

Business Performance Management and Human Resources

The concept of business performance management has been linked to the job performance of employees almost as a synonym for objective management.

Contrary to what many think, this system is intended to enhance the work of employees, clearly linking performance to pay.

Its main benefits can be summarized as follows:

  • The shared vision of the company’s goals.
  • The motivation of individuals and teams.
  • Decreased staff turnover.
  • Valuing employees.
  • Improved individual and group performance.
  • The achievement of strategic business objectives.


Business Performance Management should be seen as a cycle where the employee must follow the following order:

  • Understand the company’s objectives and goals, as well as what it expects of them.
  • Show that they meet expectations.
  • Fix any faults.
  • Plan training to overcome these challenges.
  • To be awarded by their performance.


So that the employee can go through this cycle satisfactorily, some activities should be developed by the Human Resources department:

  • The definition of roles.
  • The clear definition of individual goals.
  • Employee support and feedback.
  • Performance analysis.
  • Training in various skills.
  • Remuneration depending on performance.
  • Training and staff development.


Check out: Human resource processes: The safe answer to managing people.


Examples of performance metrics

For a long time, some companies measured their performance solely by financial results or, even market share.

Performance metrics today should consider many other spheres, such as culture, learning, innovation, sustainability, and ethics. In this context, we give you two examples of performance metrics commonly used today.

  • Balanced Scorecard (BSC)
    Real corporate fashion, this system is designed to assess, measure and optimize the performance of organizations considering four performance areas:
  1. Financial.
  2. Customers.
  3. Internal processes.
  4. Learning and knowledge.


See more: Understand in detail what the Balanced Scorecard is


  • Performance Prism
    Based on a methodology that defines “success maps” based on what stakeholders expect, it allows the division of objectives in “layers”, giving a broader and more comprehensive view of performance.


Check out: 5 practical applications of BPM technology for your company

As you have seen, in some companies Business Performance Management is entirely focused on the performance of employees, in others, the concept is broader and more strategic. Whatever the case is in your company, BPM tools can be extremely useful and effective.

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