Strategy
Business Performance
Plain English
How well a business is doing.
Definition
Business glossaryPerformancePerformance refers to how quickly and efficiently a system responds to user actions and processes tasks.Open glossary term measures how effectively a company achieves its goals, typically through financial, operational, and customer metrics.
In practice
Tracked using glossaryKPI (Key Performance Indicator)A KPI is a measurable value used to track progress towards a specific business objective.Open glossary term such as revenue, glossaryConversion RateConversion rate is the percentage of users who complete a desired action compared to the total number of users.Open glossary term, glossaryRetentionRetention measures how well a product keeps users over time by continuing to deliver value. It is a key indicator of product success and long-term viability.Open glossary term, and operational efficiency.
In context
Digital work usually connects to it indirectly, which is why the case has to be made explicitly. Nobody funds a glossaryNavigationNavigation is the system of menus, links, and cues that lets people move through a product and reach what they need. It exposes the underlying structure, and is how most users experience that structure.Open glossary term redesign; they fund reduced support contacts.
The reality
Many businesses track too many metrics without understanding which ones actually matter.
Compared with
Business Performance vs Product Performance
Product glossaryPerformancePerformance refers to how quickly and efficiently a system responds to user actions and processes tasks.Open glossary term covers usage, glossaryRetentionRetention measures how well a product keeps users over time by continuing to deliver value. It is a key indicator of product success and long-term viability.Open glossary term and satisfaction. Business performance covers revenue, cost and margin. Strong product performance that never reaches the second is a well-loved product that does not pay for itself.
FAQ
Common questions
A few practical answers to the questions that usually come up around this term.
What is business performance?
It is how well a business achieves its goals.
How is business performance measured?
Through metrics like revenue, glossaryConversionA conversion is any action a user takes that aligns with a defined goal, such as making a purchase, signing up, or completing a task.Open glossary term, and glossaryRetentionRetention measures how well a product keeps users over time by continuing to deliver value. It is a key indicator of product success and long-term viability.Open glossary term.
Why is business performance important?
It shows whether a business is succeeding or failing.
What is a common mistake in measuring performance?
Tracking too many irrelevant metrics.
Related Services
Related Guides
Related Terms
