Balanced Scorecard for MBA students and graduates

Different performance management tools that MBA graduates use

In business, it is crucial that the employees are managed well so that their performance is to the highest level. Owners and managers have used tried and tested methods in order to attain this. What then are these performance management tools that MBA graduates use in order to make the running of the business smoother?

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Business performance management or BPM is a set of procedures and frameworks that organizes, automates, and analyzes business methods, systems, data, and metrics that aim to optimize and enhance the business performance of an organization. BPM enables one to have feedback on a real time basis to spot problems and eradicate them before they are given a chance to develop worsen.

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The next step is to analyze the company’s needs to know which direction they want the enterprise to take. This is where the various performance management tools that were developed by individuals in the business intelligence field come in to play. These tools were made to make the analysis and processing of data faster and concise. The following tool categories for business performance management are most popular and are commonly used by MBA graduate or any business manager or owner:

1. Online Analytical Processing (OLAP)

This is computer processing that selects and extracts data on a multinational database, allowing a client to view information from different angles easily. This is generally designed for environments with multiple users.

2. Score carding and Dashboards

These are software applications that allow one to construct, direct, and present reliable and consistent vital metrics of the organization. These are then linked to the corporation’s strategies and goals.

3. Document Warehouse and Data warehouse (DW)

This is the combination of various document and databases across a complete enterprise. Data is taken from operating systems to present a logical and rational picture of the condition of the business at one time, thus providing flexibility for managers to data access.

4. Data Mining (DM) and Text Mining

Data Mining is a system of forecasting models, through revealing previously unknown patterns and trends found in the large amounts of data gathered across the enterprise. On the other hand, text mining uses the same analytical techniques, but is specific to text-based documents. The information extracted from data and text mining is used to support the company’s strategic decision-making.

5. Executive information systems (EIS)

The EIS is a reporting application is used by senior executives that provides access to external and internal information. It makes use of displays that are graphical and have user interfaces that are client friendly, making it easier to spot trends and monitor market performance.

6. Decision support systems (DSS)

This is an interactive software-based system used to accumulate practical information from documents, raw data, and one’s own knowledge, enabling decision makers to know the status of the company’s assets, to compare sales between different periods, and to assess project revenues.

7. Strategic Enterprise Management Software (SEMS)

SEMS is a tool that enables management to monitor a vast range of data concerning the progress of their strategies and information that they need to control and adapt. It also simulates real world scenarios to meet the changes in the environment. Financial planning, reporting, and budgeting, including analysis of risk management and corporate performance reports, are some applications that are being offered by the SEM software.

By using the performance management tools that MBA graduates use, your own business would greatly benefit in the long run.

The MBA's approaches to performance management

Performance management is essential in every organization, as it improves capability and provides three values that are important to the business. These values are delivery of information, performance supervision, and effectiveness of one’s performance. Together, these three enable managers to help to understand, control, and develop the business. As an MBA, it is important to establish a system that coordinates not only the performance of managers and employees, but including the customers and suppliers as well to create a more cohesive environment. It is then a must to know the MBA’s approaches to performance management.

If one does their research, there are various approaches to performance management, such as the behavioral approach, strategic approach, comparative approach, heuristic approach, and so on. However, regardless of how they are called, those that which are effective share characteristics that are common. These are:

1. Timely, complete, and consistent performance data is delivered.

2. Strong leadership inspires a “can-do” mentality among all employees.

3. Each individual organization takes accountability.

4. There are specific and concise performance management reviews that are conducted, which are challenging to individuals, yet supportive to the company’s goals.

5. There is transparency and guidelines are set in giving out sanctions, as well as rewards for exceptional performance.

It is also important to keep in mind that in order to achieve these characteristics, businesses should approach and apply performance management solutions in portions. These are the portions where visibility is required to effectively control the organization’s performance and make the business more responsive to environment changes. An example of this is identifying the priorities that are underlying, which guides performance decisions, such as defining the organization’s stand on priorities that are competing. These competing priorities can be the demonstration of behaviors that are valued versus the achievement of results, or recognition of the individual versus the team.

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When choosing the tools to use for performance management, it is essential that they are specific to the distinct internal organizational system being operated. This means the tools should fit your company’s structure, strategy, and culture. By clearly communicating, reinforcing, and modeling the performance culture that you envision creating, this will be the best way to respond to the company’s human resources. One will be surprised at the high return of investment rate, should this be applied.

Planning your criteria is also of utmost importance in performance management, as this enables you to set expectations. This also prevents your employees from getting sidetracked from their goals. Planning criteria can also make your employees more aware of the rewards they will receive for quality performance, and the consequences they will have to deal with for poor performance. The criteria can even be used as basis for career development. Consistent assessment and feedback on a real time basis are also critical to increase one’s effectiveness.

However, the fact of the matter is that performance management practices that are successful in one company will not necessarily yield the same results in another, even if they are both in the same industry. Therefore, it becomes an imperative to know the MBA’s approaches to performance management, to give way to the development of the appropriate approach or solution.