An Approach for Measurement of Company Business Effectiveness

Process improvement is that part of process improvement, which drives beneficial change in process performance. Improvement in results can be accomplished in many ways. One way is by improving the ways by which the results are being measured. Results can often be improved by running the process with the planned resources and executing the tasks as planned. Failures are more often the result of people not running the process as planned - they take short cuts, make mistakes, and don't take action when necessary. From organizational perspective, Performance Indicators can offer powerful insights into the status of the Company activity and processes functioning. They enable consistent tracking of objectives and strategic alignment, definition of success and critical success factors, as well as visibility into launch plans, performance, and overall quality and timeliness. Successful performance measurement system adheres to the following main principles: Measure only what is important; Focus on customer needs; Involve employees in the design and implementation of the measurement system. Performance measurement is defined as a process of evaluation of company activities performance relative to a defined goal. The basic concept of performance measurement involves: Planning and meeting operating goals; Detecting deviations from planned levels of performance and restoring performance to the planned levels, or Achieving new levels of performance. Performance measurements are very important, because they can be used for: Control - Measurements help to reduce variation; Self-assessment - Measurements can be used to assess how well the process is doing, including improvements that have been made; Continuous improvement - Measurements can be used for identification of the process trends and to determine process efficiency and effectiveness, as well as opportunities for improvement; Management assessment - without measurements there is no way to be certain that the company meeting the objectives or that the company is being effective and efficient. The Performance measurement system is composed of three elements: Performance criteria - relative elements used for comparison at the performance evaluation; Performance indicators - specific values of the performance criteria over some specified time period, or 'numerical or quantitative indices that show how well each objective is being met'. Performance standards - accepted levels of performance for each criterion. The purpose of this report is to present an approach for measurement of business effectiveness of Consultancy Company, operating in energy sector. (author).