Fortunately for the novice manager, there is a business performance cycle which can act as a framework. It is the blank canvass on which the manager can imprint the development of the business. It also provides parameters through which one examines the day to day activities of the company.
For the purposes of convenience we will describe the mode that essentially looks at the manufacturing model. This model will vary slightly with those within specific service industries but it gives a good example of the progression of the business performance management project.
It assumes that there are several major activities in the organization which include designing new products, creating models of the potential products, the actual manufacture of those products, and a review of the processes and finally optimizing the benefits of the product line.
At the design stage a concept will be created to resolve a problem. Performance management is there to ensure that that concept adequately meets the needs that have been expressed and is a viable proposition. This process will require quite extension consultation and managers should not be surprised if they have to go back to the drawing board over and over again. Logic suggests that it is better to take time planning than to have an inappropriate product.
The next stage is to translate that concept into a model. Performance management will have a role to play here in terms of ensuring that the prototypes accurately match the agreed conception so that any problems can be resolved at this stage. The model can then be tested against various stringent criteria to ascertain whether it can truly cope with any variables that are expected. Where the prototype is not accurate, the problems with the design will be lost in translation.
At the execution stage, the prototype will be turned into an actual product. Hopefully by this stage any problems will have been resolved and it will be an accurate reflection of the concept. If the work is done in batch stages, it is the role of performance management to check the final product against both the concept and the prototype. Any problems should then be dealt with either on a practical basis or through strategic management action.
The review stage is a continuous testing process against the agreed performance indicators. The product will be reviewed by clients and they will give feedback. Improvements can then be suggested to be implemented at a later stage. The role of performance management here is to check the product against all the standards that have been set and highlight any problems as well as suggesting ways of dealing with them.
The final stage is the optimization stage where feedback from both the users and technicians will be used to suggest and implement improvements. The optimization stage can continue throughout the life time of the product. The role of performance management is to ensure that the optimization actually occurs and that it occurs according to the agreed patterns at the design stage. Therefore business performance management is consequently active throughout the lifetime of the product.