How Operational Performance Management Can Improve Your Business

Having a well-functioning operational performance management system is vital for ensuring that products meet quality standards and are delivered to customers in a timely manner. It also helps businesses maintain compliance with legal and regulatory requirements.

Identifying and addressing inefficiencies in processes can help improve operational performance. Leadership and employee engagement are important in achieving these goals.


Businesses can improve operational performance by using technology to automate processes, reduce errors, and increase efficiency. This can help them save money and improve their bottom line. In addition, they can improve customer satisfaction and loyalty by delivering high-quality products and services.

Organizations can also improve their operational performance by setting clear goals and expectations for employees. They can also use technology to track and monitor progress toward achieving those goals. For example, they can use business intelligence software to analyze data and identify issues such as a high defect rate in one of their production lines.

In addition, organizations can evaluate their operational performance regularly to ensure they are meeting their business objectives. This can help them stay ahead of the competition and adapt to changing market conditions. For example, they can adjust their processes and procedures to meet demand for new or improved products. They can also improve efficiency by reducing waste and optimizing resources.

Performance reviews

A review should provide a clear picture of your employee’s overall performance over a specified period. It should highlight key accomplishments, identify areas for improvement, and set goals to support an employee’s professional growth. A performance evaluation should be based on observable and, when appropriate, measurable outcomes. It should occur no less than annually.

An employee’s overall rating should reflect their ability to perform the job and their level of achievement, including the quality and complexity of work. The rating should be based on a combination of observations, self-evaluation, and feedback from others with whom the employee regularly interacts.

A successful performance appraisal process should promote accountability, encourage open communication and collaboration, and be fair and equitable. It should also ensure that employees are held accountable for their actions and decisions. For more information, see the University’s Performance Review Policy.


Benchmarking is an essential part of Six Sigma and operational performance management. This process allows companies to turn to best-in-class companies for ideas on how to improve their operations. Whether it’s reducing churn or improving customer service, benchmarking can help organizations achieve their goals.

KPI benchmarking analysis uses process improvement tools such as 5 whys, lean and six sigma methodologies, and the seven wastes to better understand, analyze and compare processes, plants and assets. It also includes project management techniques that allow for better tracking of tasks and resources.

It’s important to remember that the benchmarking process is not a race against other companies. It’s a process of finding ways to make processes faster, more efficient and more effective. This takes time, and it is important to measure results over multiple runs, as changes to hardware, operating systems, software or queries can affect latency metrics. This helps account for unknowns that may skew benchmarking results.


The culture of an organization is a key factor in its ability to obtain optimal operational performance. A high-performance culture requires employees who are dedicated to the business’s goals and who are willing to work hard. It also depends on a strong leadership team who can set clear goals and expectations for the company.

For example, ABC Manufacturing has a goal of delivering high-quality automotive parts to customers within a certain time frame. The company uses business intelligence software to monitor its production KPIs, such as defect rate and on-time delivery. If the production line fails to meet its target, the management team can use the information to determine the cause of the problem and take corrective action.

Businesses need to evaluate their internal processes regularly to ensure they are operating efficiently and effectively. This can help them reduce costs and increase profitability. It can also help them stay competitive by reducing product defects and improving customer satisfaction.

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