Fortunately for the novice manager, there is a business performance cycle which can act as a framework. It is the blank canvass on which the manager can imprint the development of the business. It also provides parameters through which one examines the day to day activities of the company.For the purposes of convenience we will describe the mode that essentially looks at the manufacturing model. This model will vary slightly with those within specific service industries but it gives a good example of the progression of the business performance management project.
It assumes that there are several major activities in the organization which include designing new products, creating models of the potential products, the actual manufacture of those products, and a review of the processes and finally optimizing the benefits of the product line.
At the design stage a concept will be created to resolve a problem. Performance management is there to ensure that that concept adequately meets the needs that have been expressed and is a viable proposition. This process will require quite extension consultation and managers should not be surprised if they have to go back to the drawing board over and over again. Logic suggests that it is better to take time planning than to have an inappropriate product.
The next stage is to translate that concept into a model. Performance management will have a role to play here in terms of ensuring that the prototypes accurately match the agreed conception so that any problems can be resolved at this stage. The model can then be tested against various stringent criteria to ascertain whether it can truly cope with any variables that are expected. Where the prototype is not accurate, the problems with the design will be lost in translation.
