Business Process Management Improvement and a New Model for Performance Management

Abstract

In business strategy creating, a successful company measures the effectiveness of running business processes, analysing and identifying elements that substantially contribute to creating competitive advantage and ensuring long-term growth and development of the company. In emphasizing the competitive advantage, and thus the growth and development of the company, it is necessary to develop a model of continuous quality improvement that is based on a high degree of customer satisfaction, and continuous measurement and analysis of the business processes performance. Based on analysis of companies in the region it was explored how companies are organized and the extent to manage the performance of their critical business processes. The new method based on the created model is made in LabVIEW software and tested in industrial company where managers assessed the value and importance of defined KPIs in four areas: effectiveness, efficiency, cost reduction and performance during one year. The program calculates results and gives information about KPIs including graphical displaying. The new model gives managers possibility to compare results, measure performance and create business strategies. The results of business process measurement and business analysis serve to better decision-making about possible changes in business and operating model, which affects faster, more efficient, more economical and quality execution of business processes.