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Tuesday, August 08, 2006

Performance Management: The Next Breakthrough

DM Review offers this interesting look at the major breakthoughs in performance management.

From Alfred P. Sloan's take on customer segmentation to the most recent performance management issues, including:

  • Harvard Business School's Alfred D. Chandler Jr.'s Organizational Structure
  • Harvard Business School 's Michael E. Porter's Theories of Competitive Advantage
  • Total Quality Management from W. Edwards Deming, Joseph Juran and Phil Crosby
  • Michael Hammer's Business Process Reengineering
  • Peppers and Rogers' Customer Relationship Management
  • Peter Senghe and Organizational Learning
  • Kaplan and Norton's Strategy Maps and Balanced Scorecard

So what's next?

Professor Tom Davenport of Babson College authored a January 2006 Harvard Business Review article proposing that the next differentiator for competitive advantage will be predictive analytics.

BOTTOMLINE: "In conclusion, performance management is not just about better managing performance, but improving performance. Integrating systems and information is a prerequisite, but applying predictive analytics is quite possibly the critical element necessary to achieve the full vision of performance management."

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