HOW TO CREATE BUSINESS PERFORMANCE MANAGEMENT (BPM) SYSTEM

The modern information technology makes it possible not only to run business but to optimize business performance management with Business Performance Management Systems (BPM-systems). The performance management is a new approach based on the evolution of the well-known principles and laws of business management. It requires to create the advanced means of information support. To build such systems it is necessary to synthesize the theory of targeted management and balanced scorecard. However, in practice, the creation of new systems faces several problems; the most important of them can be summarized as follows: search and calculation of the index which measures the manageable efficiency; transformation of network structures that reflect target causal relationships into hierarchical ones; providing soft replacement of resources in the process of performance management; the need to use multiple-argument functions in calculations designed to find the target requirements; the need to solve problems on limitations of dynamics and ways to achieve goals.

The theory of back calculations providing transformation of strategic management requirements into the control requirements (target budget or target indicators) may be used as a platform to solve the above mentioned problems. The reasons of occurrence of these problems as well as their semantics and features are analyzed in terms of practical creation of BPM-systems. Particular attention is paid to processing of indicators measured in different scales and the transformation of network structures that reflect the causal relationships between the objectives of the enterprise into treelike ones.

The paper discusses the following functions BPM-systems: modeling and development of the balanced scorecard and strategy map of company’s operation; forecasting strategic indicators of the company and key performance indicators; adjusting the company’s goals and calculation of the planned values; monitoring the activities of company and performing financial and economic analysis of the company’s operation. 

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