Business Performance Measurement (BPM)

Published by MBA Skool Team, Last Updated: January 10, 2016

What is Business Performance Measurement (BPM)?

Business performance measurement (BPM) refers to the management and analytical process employed by the management of an organization to assess the performance of the organization to achieve the goals pre- defined by the management of the organization. Business performance management is also known as corporate performance management or enterprise performance management.


Managing Business performance is not a one-time activity and is a regular job to assess the performance and make sure that the company is working towards achieving the goal. BPM has three major activities- goal selection, measurement information consolidation and managers intervention to improve future goals. The three activities present here are sequential but they run simultaneously in line with the organization objectives.


There are several tools available with the managers and they need to select the right tools keeping in mind the objectives or goals of the organization. Some of the tools that can be used for the same are Balanced Scorecard, Benchmarking, Enterprise risk management, Six Sigma etc.


For Example Six Sigma is based on DMAIC methodology with an aim that errors should not be more than 3.4 per million opportunities. BPM activities in large organization requires churning out and reporting of huge amounts of data because of which many software vendors provides comprehensive solutions for business performance management.


This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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