Although some think performance analysis relates to software and programming, this page discusses performance analysis for organizations.

Performance Analysis is simply the concept of how the organization is performing against it targets. Performance Analysis can be

• actual versus budget [often not very useful since volume can affect performance]
• actual versus forecast [can be better but can be gamed by trying to surpass the forecast]
• comparing activity targets versus actual performance
• comparing cross functional business targets versus actual performance

We think the last 2 bullets are the most useful.

1. An organization should define its 8-12 major cross functional business processes

• Hire and Train Employees
• Market and Sell Products and Service
• Gather, Create, and Distribute Financial Information
• .
• .
• .
• .

2. Then the organization should define sub processes for each of these major processes

Hire and Train Employees

• ire employees
• Hire employees
• Train employees
• Manage Performance Appraisals
• Manage Employee Benefits
• Manage employee Individual Developments Programs

3. Define Performance Targets for each process for:

• cost
• time
• quality and customer satisfaction