Business performance management

Business performance management (BPM) (also known as corporate performance management (CPM) enterprise performance management (EPM),) is a management approach which encompasses a set of processes and analytical tools to ensure that a business organization's activities and output are aligned with its goals. BPM is associated with business process management, a larger framework managing organizational processes.

It aims to measure and optimize the overall performance of an organization, specific departments, individual employees, or processes to manage particular tasks. Performance standards are set by senior leadership and task owners which may include expectations for job duties, timely feedback and coaching, evaluating employee performance and behavior against desired outcomes, and implementing reward systems. BPM can involve outlining the role of each individual in an organization in terms of functions and responsibilities.

By 2017, Gartner had reclassified CPM as "financial planning and analysis" (FP&A) and "financial close" to reflect an increased focus on planning and the emergence of new solutions for financial close management.

New technology realizes corporate strategic outcomes and describes risk-management programs.

Performance management principles are commonly applied in the workplace but can also be used in other settings where individuals interact with their environment to achieve specific outcomes, such as healthcare. The effective implementation of performance management is crucial for maximizing team potential and enhancing daily employee performance.. It must not encourage internal competition, but teamwork, cooperation, and trust.

Performance management aligns company goals with those of teams and employees to increase efficiency, productivity, and profitability. Its guidelines stipulate the activities and outcomes by which employees and teams are evaluated during performance appraisal. Many types of organizations use performance management systems (PMS) to evaluate themselves according to their targets, objectives, and goals; a research institute may use PMS to evaluate its success in reaching development targets. Complex performance drivers such as the societal contribution of research may be evaluated with other performance drivers, such as research commercialization and collaborations, in sectors like commercial agriculture. A research institute may implement data-driven, real-time PMS to address complex performance management challenges in a country developing its agricultural sector..

Werner Erhard, Michael C. Jensen, and their colleagues developed a new approach to improving performance in organizations. Their work emphasizes how constraints imposed by one's worldview can impede cognitive abilities, and explores the source of performance which is inaccessible by cause-and-effect analysis. They say that a person's performance correlates with their work situation, and language (including what is said and unsaid in conversations) plays a major role. Performance is more likely to be improved when management understands how employees perceive the world and implementing changes which are compatible with that worldview.

In the public sector, the effects of performance-management systems have ranged from positive to negative; this suggests that differences among systems and the context in which they are implemented affect their success or failure.