What is corporate performance management? Essay

Corporate Performance
Corporate performance is a combination of management processes that analyze how well an organization is doing as compared to their predetermined target and goals. Corporate performance management is a set of management and analytic process that enables the management of an organizations performance to reach their preselected goals. Corporate performance management is also known as business performance management or enterprise performance management. There are normally four major indicators of corporate performance which are financial performance, market performance, shareholder value performance, and production capacity performance.
Core corporate performance management includes processes such as financial planning, operational planning, reporting, analyzing, business remodeling, and monitoring of key performance indicators. It requires consolidation of data from various sources by querying and analysis and then putting the results attained into management practice. These comprises of three main activities which are selection of goals, consolidation of relevant measurement information, and interventions by managers. The corporate performance management categorizes business systematically into various each division and areas that the business owns. This helps an organization to reach predetermined goals in a way that it helps to align neatly the strategic and operational objectives of the organization.
There are numerous frameworks that exist for the implementation of corporate business management. It guide and provide companies a topdown framework that teaches the alternatives to align business units, planning and execution of strategy and tactics as well as enterprise objectives. Strategies used include Six Sigma strategy, balanced scorecard, Theory of Constraints, activitybased costing (ABC), integrated strategic measurement, Total Quality Management (TQM), and economic valueadd.
In most corporates, the employees usually serve as the organization's largest expense, and its most treasured asset. This means that the corporate's productivity, and conclusively, its profitability depends on performance of its workers. In order to endure and thrive in today's economic times, corporate performance can no longer be calculated using financial measures alone. Corporates have to keep track of nonfinancial measures too such as customer satisfaction, production speed and product quality.
Most objectives are attained not through the efforts of a single individual, but by various parties from variety of departments present in an organization. Performance management experts acknowledged that coordinating and adjusting goals across several individuals initiates a "shared accountability" that is the key to a corporate's success. Management team uses Key Performance Indicators as the base foundation to evaluate and track performance of staffs and resources. Key Performance Indicators (KPIs) are a corporate's recognizable objectives, commonly bound to an organizations strategy, as revealed through performance management tools such as the Balanced Scorecard.
Key performance indicators implementation on a balanced scorecard normally comprises of four processes
The company transcribes its corporate vision into measurable operational goals that are then conveyed to employees.
These goals are associated to individual performance goals which are surveyed on a set periodic basis.
Internal processes are established to meet and / or go beyond the strategic goals and customer expectations.
Finally, Key Performance Indicators are interpreted to evaluate and suggest recommendations to improve company prospective performance.