Performance management
Implement a performance management framework that is measureable, sustainable and visible to investors
Overview
Today’s businesses face a common set of challenges in three critical areas of performance management.
First, despite requiring substantial resources, planning, budgeting and forecasting, processes are often not strategically aligned. Second, performance reporting processes are often fragmented and inflexible, and frequently produce irrelevant results. Third, performance measurement fails to effectively measure and incent the most valuable metrics.
Companies have tried to overcome these challenges with heavy investments in enterprise resource planning software and best-of-breed software applications, and these have helped in certain areas. Yet many businesses still do not make decisions based on a fully integrated view of performance which includes the drivers, the measurements and the overall shareholder value they create.
Deloitte’s Integrated performance management (IPM) approach does just what it says: it integrates the key processes, systems and tools required to plan, manage and measure performance while providing your business with end-to-end insight into what you’re doing, how you’re doing and what you should plan to do in the future.
Consolidate your approach to performance management
There are three key improvement areas within Deloitte’s IPM approach:
- Plan, budget and forecast
Corporate plans and budgets are often too unrealistic to engage business managers and too high-level to guide investors. These issues are the result of an incomplete view of a company’s overall financial strategy, and can prevent plans, budgets and forecasts from being strategically applied to drive the business and improve performance. We can help by:
– Applying our Enterprise Value Map™ (EVM) to identify and focus on the key value drivers of your corporate strategy
– Leveraging our process design and implementation expertise, as well as our knowledge of planning tools to streamline your planning process and deliver an integrated view of financial and operational data
– Improving the overall effectiveness of your forecasts by running multiple business scenarios and generating rolling forecasts to ensure your business remains on-track
- Performance reporting processes
Despite ongoing efforts, most organizations continue to be saddled with inflexible reporting processes, over reliance on manual processes, and an inability to effectively leverage their data. This makes it increasingly difficult to fulfill growing compliance-reporting requirements and provide internal decision makers with accurate, current, and relevant information. We can help by:
– Developing a governance structure to sustain change, standardize processes and drive common information standards
– Building flexible reporting and technology infrastructure
– Applying vendor-agnostic advice to select the reporting tools that are right for your business
– Establishing a single version of the truth across the organization by consolidating your data to create accurate reports that link to your underlying business drivers
- Performance measurement
You cannot purposely improve something that you cannot accurately measure. By using value drivers, we can help align your measurement processes with the key activities that make your business work. Deloitte can help by:
– Narrowing your focus on key performance indicators
– Implementing a common finance information strategy
– Developing performance measurements that have broad significance for employees, including clear accountability and appropriate rewards - – Implementing balanced scorecards that cover all key value levers as well as multiple dimensions (operations, customer service, financial performance, etc.)
Improved performance management delivers clear benefits
Deloitte’s performance management solutions can help your organization by:
- Focusing on strategic execution
- Developing streamlined and strategically aligned budgets and forecasts
- Improving capital allocation decisions
- Aligning plans and performance measurement with shareholder value
- Improving visibility of key business drivers with dashboards and benchmarks
- Streamlining management reports to create a unified view
- Improving the transparency, reliability and timeliness of your data
- Helping motivate and retain employees with rewards linked to strategic goals
A sustainable, value-driven performance framework
With Deloitte’s proven methodologies, our proprietary value creation toolset and extensive cross-industry experience, we can help you implement a performance management framework that will not only improve performance, but make it measureable, sustainable and visible to investors and other key stakeholders.
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