B.C. Forbes declared, “If you don't drive your business, you will be driven out of business.” Unfortunately, it's hard to drive when you can't see. Despite massive investments in Enterprise Resource Planning (ERP), Customer Relationship Management (CRM) and other enterprise systems, many companies still don't have the information they need to make good business decisions. The problem isn't a lack of information — it's a lack of insight. Today's decision-makers are buried in raw data and reports, but the truly useful insights are hidden somewhere in the pile.
Leading organizations are starting to close the insight gap through a practice called Integrated Performance Management (IPM). IPM is a holistic approach that spans all of the processes and technologies related to performance management — from planning, budgeting, and forecasting to reporting, performance measurement, profitability and compensation. IPM makes performance management more efficient and more consistent across the entire enterprise, improving the quality and timeliness of information and generating new business insights that help decision-makers steer the organization to a higher level of performance.
In Deloitte we believe, that the Integrated Performance Management practice is a strategy, the planning of which is anticipated as a decision making process. Such a crucial process should be undertaken carefully and systematically by experienced professionals with the appropriate skill set.
The initial and basic tool that needs to be implemented and used as the rule that leads to the successful approach of the IPM, is an integrated Management Information System. Deloitte’s methodology for implementing an integrated MIS, combines the key requirements for creating an effective system:
• Aligning strategy, performance measures, and management reporting
• Breaking down the organisation into a management reporting pyramid, with each reporting level having access to different management reports and performance measures
• Ensuring that the information flow both Top – Down and Bottom – Up promotes alignment of organisational objectives.
• Integrating the MIS outcomes and combining them with the Budgeted targets / goals / figures, to provide the opportunity for critical evaluation of results and performance (pls see budget).