What is strategic performance management?
Strategic performance management is a business function where business owners and managers develop activities or tasks to measure the overall efficiency and efficiency of their company. This process often includes a detailed view of the company and setting specific objectives or objectives for divisions, departments, managers and employees. Owners and managers set goals or goals for business processes, collect information measurement information and make changes to the correct problems or improve the performance of the company. Owners and managers usually rely on their personal education, experience and knowledge of business functions and tasks. Strategic performance management uses both quantitative and quality measuring tools. Quantitative tools include the use of mathematical or statistical formulas to determine how well society achieves its goals. Qualitative analysis relies more on personal judgment or derive information from the experience of owners and managers. Six Sigma, Balanced Scorecard, Costs based on aKtivitách and overall quality management are several more well -known methods of performance management. Six Sigma is a reputable management strategy where companies try to improve their performance by reducing the number of errors in each business processes. This process uses statistical measurements to find out where errors occur and how the company can eliminate the problem to achieve an accuracy of 99.9999 percent in business processes.
Scorecard Balance is a system of strategic performance management, where owners and managers outline their financial, business process, customer, and perspectives of learning or growth. This usually includes a more qualitative process where owners and managers evaluate information to develop strategies to improve production and performance. The balanced Scorecard also outlines the goals, goals and initiatives that the company should achieve for business operations.
Costs based on activities is a strategy performance toolThe procedure, which focuses primarily on the commercial costs arising from its operations. While most performance management tools include cost reviews, the cost -based costs are a function of proceedings, which focuses on the allocation of commercial costs for goods and services produced by the company. This helps companies find ways to reduce the cost of raw materials, work and direction.
Total quality management is a strategy that companies use to improve the quality of consumer products and the development of positive interaction with customer service. This strategic performance management focuses more on product quality and customer service because these items represent the company on the economic market. Improvement of these items can lead to better goodwill in the business environment and a stronger market share.