Strategic performance management systems have beneficial impact on Essay

Strategic performance management systems have beneficial impact on performance, critically discuss - Essay Example A properly formulated performance management process empowers a manager to come up with effective and efficient strategic plans, set ambitious goals and follows closely the activities that work towards achieving his set goals, this leads to value creation that can be sustained for a long time. This paper will therefore aim at critically analysing the process of strategic performance management and how it impacts positively on the performance of the organisation. The Strategic Management Process The process of strategic management involves several steps, they include, first is understanding the strategic context that a business operates in, this involves both external and internal environment. In the internal environment, the first activity that a business does is the identification of the core purpose of the business, values and goal which it intends to achieve (Bisbe & Melaquero, 2012 p304). These then helps the management to come up with an overall vision of the organisations and t he direction it will take. ... The visionary goals of the organisation is the outlook of the company in future, that is how the company will be in the future and includes the achievements it hopes to have achieved by that time, these goals are set on a period of 3 to 10 years (Slack, 2006, p99). In the external environment, the company surveys the market for its products and the rivals in the market, here the business seeks to understand who the main stakeholders in the industry are and why it is necessary for the business to centre its operations on them, this activity is known as the stakeholder value proposition (Smith,2007, P 86). In order to carry out this activity, a business can use several tools that have been created that include Porter’s five forces framework. In the internal environment analysis, a business analyses its strengths and weaknesses where it evaluates its internal performance and the resources that it uses in the discharge of its responsibilities. This process enables an organisation to understand the effectiveness of its production process, how productive and skilled the employees are and how these can impact on the performance of the business (Penger & Tekavc?Ic?, 2009, p12). Model of the business is the next stage that a company undertakes, in this step the business organisation puts together all the key elements of the business strategy and visualises it. Using the Kaplan and Norton’s method, the result of this step will be strategy map while using the Marr’s methodology then the result will be value creation map and value creation narrative (Macmillan & Tampoe,2000, p105). Both of these methods used in this stage produce almost the same results