Performance Management Systems and Strategies

SPM FOR ENVIRONMENTAL THREATS AND RISKS

Responding to the change faster than the competitors is what we consider as the important competitive advantage for any organization. Environmental threats and risks for frequent change in the environment alter the way the organization works. Some organizations even lose their market leadership to their competitors. Effective SPM practices, can alter the adverse effects of environment on organization. It requires monitoring, understanding, and if necessary even preparing for the following:

• Industry Changes—new competitors, mergers and acquisitions, new suppliers, etc.
• Political Changes—change in government, legislation, taxation policies, etc.
• Economic Changes—inflation, interest rates, unemployment, stagnation, ...