THE IMPORTANCE OF PERFORMANCE INDICATORS IN ANALYZING BUSINESS ENVIRONMENT AND BUSINESS EVOLUTION
The analysis of economic environment brings into attention of the ones interest important trends and important evolutions that can bring into surface new strategies and new ways of obtaining profit. This is to say that staying in connection with all the changes and analyzing the trends in business p...
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| Main Author: | |
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| Format: | Article |
| Language: | English |
| Published: |
Nicolae Titulescu University Publishing House
2017-05-01
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| Series: | Challenges of the Knowledge Society |
| Subjects: | |
| Online Access: | http://cks.univnt.ro/uploads/cks_2017_articles/index.php?dir=05_economics%2F&download=CKS_2017_economics_009.pdf |
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| Summary: | The analysis of economic environment brings into attention of the ones interest important trends and important evolutions that can bring into surface new strategies and new ways of obtaining profit. This is to say that staying in connection with all the changes and analyzing the trends in business performance, analyzing performance indicators helps managers to know not only their firm but the environment, the opponents, stakeholders and the opportunities that can be optimized and used as advantages in a turbulent economic area. In general, performance is associated with two key processes: performance management and its measurement. Performance management is a holistic process which embodies the subject of performance and reflects the connection between the economic entity and performance, including processes such as definition of strategy, implementation of strategy and training and performance measurement. Performance measurement appears as a low performance management that focuses mainly on the identification, tracking and communicating performance that results through the use of performance. Key performance indicators help quantify the formation of a result, providing visibility in relation to the performance of individuals, teams, departments and organizations, allowing decision makers to take action in order to achieve the objectives desired. These indicators can be appreciated based upon the trends in the company or benchmarking - comparisons with standard industry values or reference companies. |
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| ISSN: | 2068-7796 2068-7796 |