Corporate Performance Management
Five ways to get more value now
We’ve worked with some of the leading companies in the world to improve their performance management capabilities. Here are a few things we’ve learned along the way:
Start with strategy. The traditional approach to planning, budgeting and forecasting relies heavily on individual input and gut feel – and the results are often out of sync with what is actually happening in the business. Effective performance management starts with linking the enterprise business strategy to key business drivers, which should help produce consistent action and measurement across the organization.
Use integrated processes to serve multiple stakeholders. Many companies handle external reporting and internal management reporting as two separate activities. This often leads to conflicting information and needless duplication of effort. Internal and external reporting should be managed as a single integrated process that tailors its output to meet the needs of two different stakeholders.
Set priorities. Most companies suffer from too many reports that deliver too little insight. Think about what information is truly needed and who needs it, then design your reports accordingly. Don’t be afraid to phase out reports that provide little value or insight. Such reports often create more problems than they solve.
Manage change. Performance management information should be used by decision makers throughout the business. That widespread impact can both help and hinder an organization – creating resistance that can easily undermine the overall effort. Involve key stakeholders early and often to get their insight and establish a sense of ownership.
Take it one step at a time. An integrated performance management framework includes many processes in areas ranging from information management and performance improvement to business analytics. You don’t have to achieve process excellence in each area to deliver value. It’s more important to determine what your organization needs most and then plan accordingly, one step at a time.