Metrics for Business Performance Management

Abstract

Business Metrics are very useful tools to promote business performance, assure quality and promote continuous improvement. During economic recession the application of these tools becomes imperative to assure business subsistence. Adhering to traditional cost reduction tools and strategies even though can be effective it is in some respect orthodox and can have an adverse effect. However, the most appropriate course of action is to perform a throughout assessment of the current business situation and the market conditions to understand business operational cost drivers. Measuring against established goals and Key Performance Indicators (KPI’s) is the best way to evaluate business performance. Successful businesses today more than ever place a pronounced emphasis in the concept Voice of the Customer (VOC) as their guiding principle to thrive during economic crisis and recession. Lean Six Sigma principles and tools are also proven strategies to reach the next level. Key Terms - Business Metrics, Improvement, KPI’s, Lean Six Sigma, Performance, Quality.