Evaluation of Business Performance

Aug 11, 2020 | HR

There are several key performance indicators (KPIs) through which any organisation can measure its performance. Although many measures can be used, it is imperative for a company to determine the most relevant. Some of the approaches that can be applied to measuring KPIs are:

Bolton Consulting Matrix for Evaluating Business Performance

This model is relevant to companies that has a number of business units that wishes to identify which of these units it should focus on. In doing so, the company can identify poor performing units and develop those accordingly. This logical approach to analysing all business units helps the company to establish the overall business strategy. Generally, the model classifies a company to one of the following categories:


This being a profitable business unit that has a dominant market position. It has the best prospects for employees and a myriad of promotional opportunities as well as competitive salaries and benefits. A good example of such a company is Virgin. It is market dominant in its sector and is renowned for offering competitive packages to its employees such as its unlimited holiday entitlement policy.

Cash cows

They can be described as mature companies that have a larger market share but a relatively slow and low growth rate. Although the company is secure and the profits are good, it is unchallenging, and as a result, the opportunities for employees will only manifest when other employees leave. A typical example would be high-street banks. They used to be comfortable and secure places to work since people had promotion opportunities upon the retirement of others. However, these have changed, and the focus on budget cut and accumulating as much profit as possible as well as competing with other newer banks that have arisen due to change in technologies such as blockchain is common.

Wild cats

They can be described as new ventures that do not have a significant market share but have the potential for high growth rate. They can represent risky places to work because the longevity of staff is based on the success of the organisation. Tech startups are typical of this.


These organisations are assured of failing. They have both a low market share and growth potential.

Use of Support Services for Evaluating Business Performance

One of the ways of evaluating performance is through the assessment of customer satisfaction. This can easily be achieved through the correct processes and responsive management structure. It is at this point that the HRM function becomes imperative as it ensures that any company has the right workforce in place to deliver its products and services. It ensures people are competent and are well trained for their roles. The HRM function ensures that there is operational efficiency and achieves this by ensuring there is an appropriate framework of policy, process, safety laws and a good, well trained workforce.


Benchmarking is good way for a company to evaluate performance as well as determine its capabilities. Benchmarking is essentially when you measure your own company operations with those of another successful company in the market place. Typically, this methodology is standard in the public sector but is often used in other limited companies. Consequently, the examination of competitors should result in the identification of KPIs. However, it is essential to note that benchmarking can be challenging to execute as finding data regarding other organisations performance can be difficult. Although some organisations publish information, sometimes the details provided may not be sufficient or necessary for comparisons.