“What exactly is Business Performance Management…

January 5, 2009
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“What exactly is Business Performance Management (BPM)?

Ask five people and you will get six answers. The COO will say it is Operational Performance Management (OPM) because it is used to manage activities associated with production and distribution. The CFO will say it is Corporate Performance Management (CPM) ‐‐ running a business “by the numbers.” Others will say it is the latest incarnation of analytics, dashboards, and Business Intelligence


“What exactly is Business Performance Management (BPM)?

Ask five people and you will get six answers. The COO will say it is Operational Performance Management (OPM) because it is used to manage activities associated with production and distribution. The CFO will say it is Corporate Performance Management (CPM) ‐‐ running a business “by the numbers.” Others will say it is the latest incarnation of analytics, dashboards, and Business Intelligence (BI). Then there are those that will confuse BPM with the other acronyms with the same letters – Business Process Management (which we are, for this paper, labeling as BPrM). The difference between them is more about the approach than the results. The more contemporary Business Performance Management is a broader top down approach while time honored Business Process Management assumes a more focused supporting role and is bottom‐up.

BPM is the combination of Business Intelligence (BI) and BPrM ‐‐ an amalgamation of the various methodologies used to plan, measure, analyze, and run a business.

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