Abstract

Business process management and performance management merge with each other as business process management evolves. Efficiency is a characteristic of the system in terms of the ratio of costs and results of its functioning, ability to lead to given results. Efficiency in the concept of process management is the measurement of predefined operational characteristics of the process: qualitative and / or quantitative indicators that characterize the process. The main indicators of process efficiency are the process efficiency indices. In addition, in the theory of performance management key performance indicators are emitted. Although they have much in common (relatively constant, measurable, assess progress, etc.), the main difference between these indicators is that process performance indicators measure operational efficiency, while key performance indicators represent the business objectives that the company wants to achieve at a strategic level. There are different types of the process performance indicators: productivity and effectiveness, temporary, costly, high-quality; early and late. Process performance indicators are assigned to each process to monitor its effectiveness and to correlate the achievement of the process goal and the costs to achieve this goal. The establishment of key performance indicators depends on the organization's strategy and is implemented using methodologies developed and tested in practice, the most popular of which is the Balanced Scorecard. With the purpose of forming a control loop for the efficiency of business processes, the principles of managing the efficiency of processes are singled out: the level of development of performance management directly depends on the level of process maturity of the organization; when analyzing the process, performance indicators are primary, and then productivity; understanding customer motivation when evaluating the process; evolutionary measurement of effectiveness. The performance management framework of business processes consists of planning, execution (which also consists of performance monitoring processes for each selected process), verification and updating.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.