Critical Component 2: Performance Management Process

The second critical component of Performance Management is linking the strategy to a Performance Management Process that provides the tools and measures to enhance the key drivers of value in the organization. 

Performance Management Process
The Performance Management Process is an integrated, continuous cycle rather than a one-time event.  In other words, it is the "journey."  A performance management process is simply a means to analyze your operations, identify opportunities for improvement, develop changes that address the opportunities, and monitor the effectiveness of those changes.

Strategic Linkage	Value Driver Identification
Linkage of strategic objectives to the key drivers of value is critical to the successful deployment of a strategy.	Value driver identification and analysis provides the means to ensure that the measures and targets that are developed at any level of the organization are aligned with the strategy.

ExactCost Performance Management Process^TM
The ExactCost Performance Management Process utilizes the methodology called Activity-Based Methods.  Activity-Based Methods apply the fundamental principles of Activity-Based Costing (ABC) and Activity-Based Management (ABM) to optimize Enterprise Performance.

ExactCost solutions fully implement the fundamental principles of the ABC and ABM approach to cost management for use by healthcare managers; providing an effective interface between strategic decision-makers and operational management. 

These tools highlight the relationship between the things we do everyday and the resources required to successfully serve the needs of our patients.  Equipped with this information, a departmental manager can identify improvement opportunities and act on the opportunities.