Creating a Model for Business Performance Assessment - a background

Entrepreneurs have been exposed to continually increasing competitive pressures. Hence, a process of continuous improvement is to be an inherent part of firm management. In case this process shall be implemented on a broad basis with the aim to maintain and increase firm competitiveness, then this process must be approached in a system and systematic way. An implementation of a suitable system of performance assessment based on a comprehensive TQM model seems to be an appropriate instrument for that. However, it is of vital importance the diagnostic approach to be preferred within the performance assessment when aiming at maintenance and strengthening the competitiveness. Such an attitude to performance assessment enables an assessment of processes and systematic factors in relation to identified lacks in firm performance in a more qualified way. In this respect, the authors of the paper refer to the conclusions of Conti and present a framework algorithm for diagnostic firm self-assessment based on notorious Deming´s PDSA cycle (Plan - Do - Study - Act). At the same time, in the paper there are specified basic activities that should be realized within single phases of firm self-assessment cycle. In general, the paper deals also with some firm self-assessment success factors.