With big data, customer engagement, predictive analytics and business intelligence taking the spotlight in the news cycle, it can be very distracting to see what is really necessary to drive business performance. In such a crowded, buzzword-filled market it seems that the majority of the businesses are following the trends rather than focusing on the bigger picture. None of the new business fads are what is required to sustain long-term revenue growth and they may or may not be big influencers of profit growth.
So, what is important for long-term business growth? What drives business performance? Developing performance management capabilities means changing the way people are empowered to make better decisions. It requires a transition from a restrictive, command-and-control approach to a management style that includes more participants in the performance management process. Companies require to increase their agility, alignment and accountability to improve their performance. But growth doesn’t come overnight, and organisational change required to increase business performance isn’t a simple task, so here we cover 3 first steps to help you drive business performance in your organisation:
Step 1: Business Valuation and Modelling to Drive Business Performance
First things first, to begin increasing business performance one has to establish what performance actually means for their business through setting key performance indicators (KPIs). Many organisations will already have a financial professional that regularly runs reports on key business indicators, so there is often an established understanding about what is required in order to produce that desired growth. But when it comes to looking at them from the long-term performance and planning perspective, it is not always just about the finances.
When it comes to setting your long-term business performance indicators there is no secret formula. Every business is unique, and everyone will track different factors, as the metrics that you track and measure for your KPIs will completely depend on your organisation’s goals and objectives.
Step 2: Utilise People Data to Drive Business Performance
Driving business performance is all about data, and one type of data everyone always forgets is so-called “people data”. People data is insight collected by an organisation about their staff, or future staff from HRIS, payroll, benefits and other workforce or talent management systems.
Organizations already capture a huge amount of people data, so it isn’t a stretch to begin analysing and using it to improve business performance. The people analytics offers a business new perspective on people risk and opportunity, a unique way to understand value creation and value capture. Also, accurately using people data can help improve cost management, eliminate hidden expenditures and help to create a more transparent business insight distribution that can drive business performance, adding this data set to your business performance helps to get a more well-rounded view of your long-term business goals and requirements, after all, people make your business.
Step 3: Market Insight to drive business performance
No business is not an isolated entity placed inside of some economical bubble, so it is crucial to consider your business performance in the light of your market insight. This insight must be well rounded, you have to consider your customers, your competitors and everything around them too. When it comes to driving performance through your customer insight, your organisation needs to understand and be able to act on and monitor your current and potential customer needs and satisfaction, their overall requirements for your product and everything in between. While when you are looking at the competitors, one needs to understand the strengths and weaknesses, as well as any new or potential entrants into the market.
All of this must be constantly measured, analysed and monitored in order to understand the market and the way that the market is moving. Setting your strategies and business performance targets according to the trends that are visible or just emerging. Additionally, more in-depth analysis of your business, like financial scenario planning can help to prepare for these trends, or keep the business stable during them.
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