Business Process Management and Balanced Scorecard: A Holistic Management Approach

Business process management is utilized by many organizations to control the computerization of existing and future business processes. The key focus of business process management is to reach the full potential of the firm's internal rate of return and quality customer service. Due to its popularity, organizations develop and take advantage of business management systems.

Advantages of business process management include the use of tools or models for modeling, monitoring, automating, analyzing, and optimizing business processes, enabling organizations to achieve their profit goals. It enhances smooth workflow for increased productivity and facilitates effective documentation and storage for future reference. Business process management also improves the quality of customer service and product quality, patterns reporting for management use, and reduces costs and time by optimizing working hours.

Performance Management Balanced Scorecard

The balanced scorecard is another management tool that balances the four aspects of an organization: financial, customer, operations, and learning and growth. This approach aims to balance these aspects to achieve the overall goal of the organization.

Advantages of a Balanced Scorecard include:

  1. Balance: Ensuring that all aspects of the organization perform well, not compromising one aspect for the sake of another.

  2. Scalability: Metrics used in the scorecard make individual performance measurable, allowing top management to assess departmental managers.

  3. Customer Focus: Based on the perspective of customers rather than internal organizational goals.

  4. Employee Insights: Enables management to gain insights into employee satisfaction, leading to lower turnover and increased productivity.

  5. Growth and Development: Metrics for gauging employee satisfaction, fostering loyalty, and excellent performance.

  6. Proactive Management: Helps management be proactive by monitoring current performance and anticipating potential problems.

This holistic approach to management ensures that the four aspects are always in balance. By utilizing business process software and tools, organizations can achieve their mission and vision, leading to success.

Source: ArticlesBase