The First Word: Getting There From Here

The latest feedback from practitioners of business performance management underlines that the most wide-ranging benefits of BPM are universally desired but difficult to achieve. I recently participated in a panel discussion at a conference attended by executives considering investments in performance management software. When asked what was motivating them to purchase BPM, the answer was unanimous; all 50 cited "linking strategic planning with operational management" as their key driver. This suggests that users want BPM to move beyond the initial Band-Aid phase, in which best-of-breed solutions were used to redress a pain point specific to one business unit, toward a more holistic, integrated, enterprisewide approach that taps into the full potential BPM represents.

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But this expectation doesn't seem to match reality. Let's start with the technology. As our editor in chief, Meg Waters, reports in her article Is BPM Performing? two recent surveys show that current users of BPM software are not very satisfied with their solutions. Why is that? The disappointing feedback has more to do with unrealized expectations and poor customer service than with the software's functionality. But the bottom line is that both surveys identify only a small minority as extremely satisfied with their performance management solutions.

In addition, even though large and well-managed enterprisewide implementations deliver BPM's biggest benefits, for reasons far too universal to ignore -- tightness of budget, lack of executive sponsorship, and unsupportive technology infrastructure, to name a few -- many organizations are still starting smaller, with BPM projects targeted to highly specific needs. John Van Decker, who recently joined Longview Solutions from Meta Group, observes in his article that BPM projects continue to progress more by fits and starts than by leaps and bounds. If these smaller projects are successful, companies may then grow them into enterprise systems.

Whether an organization is implementing a small, focused application or rolling out a performance management suite companywide, the BPM champion will likely face internal resistance to the behavioral changes that BPM requires to be effective. Dean Sorensen, of Bywater Management Consulting, provides guidance on how to establish a BPM program. Sorensen's seven tips can not only help project organizers sell the merits of a prospective BPM system internally, but also help ensure that the implementation is successful.

Considering the importance of people in the BPM equation, it's not surprising that empirical evidence shows that satisfied employees boost an organization's performance. Frank Mulhern and Bruce Bolger, leaders in Northwestern University's Forum for People Performance Management and Measurement, posit that the businesses that perform in the future will be those that look to their relationships with customers and employees to better understand how to achieve their objectives. And Australian management consultant Graham Kenny, in an excerpt from his book "Strategic Planning and Performance Management," explains how companies can sharpen their people focus. His article describes a method for developing corporate performance metrics that clearly target employees, customers, and other groups of key stakeholders.

Best practices for gaining internal buy-in for a BPM purchase, or for developing corporate performance metrics, are fairly universal. However, the details of how a company puts theory into action may vary by company size or by industry. That's why this issue also includes an article by Rolf Gegenmantel, of Systems Union, explaining the unique BPM needs of midmarket organizations, which are purchasing performance management systems in growing numbers. It's also why we're launching a new section in this issue, called Case in Point, that features Q&As with executives who have implemented BPM. We all can learn from the experiences of the people in the trenches of BPM. Please don't hesitate to contact us if you'd like to share your best practices -- or war stories -- with our community of business, finance, and IT executives.

David Blansfield is editorial director and publisher of Business Performance Management and chair of the BPM Summit. You can reach him at dblansfield@penton.com.

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