Using fuzzy techniques in Business Performance Management

An important part of business performance management (BPM) is identifying strategic targets for the organisation, cascading them down into tactical and operational targets and finally optimising operational levers or actions as to achieve the given targets. In order to do this, performance metrics have to be defined at all levels and relationships between levers and metrics have to be mathematically modelled. Thereby, traditional BPM cannot deal with imprecise information although imprecision is a commonplace in real world applications. We discuss the most important functions of BPM and show how fuzzy and probabilistic techniques can be applied to process imprecise information. A few of the techniques have already been implemented in a research prototype.