Today, many organisations operate in globalising markets and they struggle to make the correct decisions in response to a rapidly changing business environment. They make a limited assessment of the contribution made by projects and processes to the strategic objectives – or no assessment at all. Deloitte’s Integrated Performance Management specialists can immediately demonstrate the added value of a performance-driven organisation.

Integrated Performance Management (IPM) offers a systematic approach to performance improvement via the collection, analysis, assessment and reporting of performance data, in which these data are set alongside the performance objectives. IPM offers the following advantages:

• The measurement of performance against a variety of points – not just financial results. The encouragement and improvement of processes and services, resulting in a stronger corporate vision and strategy
• The opportunity for managers to translate strategy into concrete plans, which are implemented and measured throughout the organisation
• Accurate insight into the (past, present and future) performance of the organisation helps the managers make decisions. Projects and processes are only initiated when they make a contribution to the ultimate strategy
• An internally coordinated organisation that focuses on strategy. Employees are aware of their contribution to strategy, resulting in increased motivation. Employees are given direct responsibility for their performance, which creates transparency in the reward and remuneration process and the attainment of objectives

The Deloitte approach
At the start of every IPM project, Deloitte carries out a quick scan, ensuring that the IPM implementation merges connects perfectly with the wishes and characteristics of your organisation.

The effective Deloitte approach involves:

Focus
Focus achieved via an analysis of the organisation’s business model. A performance management model makes it clear which strategic objectives contribute to further value creation. In the case of a private-sector organisation, this relates to shareholder value; of a public organisation to the public interest.

Coordination Tailoring the organisation to achieve the established strategic targets. Translating the targets for each layer of the organisation so that each employee has a clear picture of what his responsibilities are and what he contributes to the strategy. Projects and processes are also assessed with regard to their contribution to the strategy. This will possibly lead to reshuffling of current projects or the adaptation of processes.

Integration
Effective performance management of achievements. Responsibility for performance measurement is embedded by means of integration within the organisation and a clear IT structure ensures integral performance measurement. 

Organisations are aware which strategic objectives are important for their business.  However, finding the right information to gain an insight in their performance presents quite a challenge. Deloitte IPM experts offer tools and methods that give a clear picture of the organisation’s performance and the effects of strategic targets. A Key Performance Indicator dashboard gives a transparent, user-friendly performance overview.  The presentation of the performance data is uniform and integrated throughout the various departments.

 

Behaviour
One of the key elements of an IPM solution is the creation of a performance-driven culture. The organisational culture is mapped out in advance by means of an IPM culture scan. This enables effective advance planning of possible interventions in this culture.  In this process, aspects such as leadership, communication, reward and attitude towards work play important roles.

A performance-driven organisation brings strategy and implementation together
By utilising focus, coordination, integration and behaviour, our Deloitte experts are able to realise a fully operational performance-driven organisation, in which strategy forms the starting point for every single activity.

In this performance-driven organisation (cycle depicted in the graph below), the planning, targets and budgets are all established on the basis of the strategy.  The entire process is supported by IT resources and a culture geared towards the improvement of individual and collective performance.

More information
For more about Integrated Performance Management, please contact Edwin Flenter, Deloitte BTA director on tel: +31 (0)20 454 75 32.