Business excellence is the outcome or measure of Performance which makes Performance Management a tool to achieve Business Excellence.
On the way to achieving Business Excellence firms’ attempt to attain competitive advantage (Porter 1980) and organizations adopt various techniques to realize efficiency and effectiveness. Industries struggle to gain this competitiveness through shorter production cycles, improved quality and responding with speed and efficiency to meet customer requirements (Ahmed and Abdalla 2000a, 2000b). To reach excellence it is critical to developing internal quality consciousness and the ability to respond quickly as per schedules (Clausing 1994). Usually, profits and returns are considered to be a measure of accomplishment, but, in its widest sense, quality is perceived as the vital element for both national and global success (Dale 1999, Feigenbaum 1999).
A number of organizations also implement Total Quality Management (TQM) practices to guide them through to becoming competent and successful as TQM is a preventive approach and not a detective approach to work (Walton, 1986).
According to Zairi and Youssef (1998) in the global context, today competition cannot be met with cost efficiency alone. Quality plays an equally important role in assessing competitiveness. Quality is a function of TQM is but it is focused on quality improvement alone and in the broader sense does not cover the entire activities of the organization and therefore the Business Excellence has replaced both Quality and TQM as the final measure of performance that affects all stakeholders. (Dale, Zairi, Van der Weile and Williams 2000).
Amaratunga and Baldry (2003) state that it is a process of ascertaining and assessing progress and achievement of pre-determined goals and includes information on the efficiency that has been shown in the conversion of resources into goods and services. .