To be successful, organizations need to meet, and possibly exceed, customer requirements. They will need to examine employee engagement and productivity. They will need to monitor and measure the performance of vendors and suppliers. A business performance management system will accomplish all of this.
Business Performance Management
The goal of every company is to see its value rise. Publicly traded companies will experience this through rising share prices. What drives a rising share price? The answer is simple, consistent “real” earnings. What I mean by real earnings is true profit growth. True profit growth is the result of sustainable growth; not creative accounting practices. The market is quick to notice when a company’s earnings are starting to become suspicious. For proof, just take a look at a chart of Enron’s stock price history. The stock started its downward spiral years before any of its faulty accounting practices came public.
Sustainable growth is that which is basically organic to the company: increased revenue. Some organizations try to manipulate revenue growth through various techniques–buying a competitor, opening many new stores, and slashing prices. These techniques do create short term revenue spikes but not necessarily long term revenue growth.
To achieve sustainable growth a company must engage its customers. Bringing customers back to your organization is the biggest driver of organic growth. Successful and satisfied employees are critical in retaining customers. Proper training, placement, and compensation are all factors in having a satisfied employee. Employees are where business performance management systems will start. After that, a system will go down the line to ensure the success of the company.