Corporate performance management
The dynamism, speed, and competitive nature of the business environment require that companies seek a competitive advantage to develop highly focused performance management processes. A high performance management standard allows clients to streamline their company and transform it into a client-oriented company.
We assist our clients with implementing performance management, communicating strategic goals to employees, identifying early warning signs of problems, and deciding what corrective actions are needed. By having access to timely and comprehensive performance information, the management is able to pinpoint the root cause of problems more quickly, set standards and targets, and better assess the strategic value and effectiveness of business processes.
A successful, effective performance management system allows a company to:
- lower costs
- streamline the allocation of resources
- create more flexible and useable budgets
- receive better returns and a lower cost of capital on investment opportunities and growth projects
- improve the overall quality of its financial decision making
- increase profitability.
The unique nature of performance management and measurement allows companies to develop and implement a system that cannot be easily copied by competitors.
Key Performance Indicators (KPIs) are a critical part of performance management. They serve to align companies behind goals and direction, provide clear accountability for individual and collective performance, and provide the best mechanism for incentives to achieve performance targets. In practice, defined KPI should turn into Management Information (MI).
The MI framework should be present in all firms to help them drive the business performance aligned to the strategy at all levels of management:
- Strategic level MI
- Operational MI
- Transaction / Process MI
- Integration through all the levels
Typical issues that you can face:
- How do we align our key performance indicators and reduce the volume and complexity of our management reports? Management Information is:
- produced but not used
- too detailed to be used by management
- insufficient for management decision making
- incremental, due to timely evolution of the system
- not available on time.
- How can we reduce our overall budget cycle time and deploy rolling forecasts to increase the value of our financial planning process?
- How can we automate our planning, reporting, and analytical reporting processes through standard data models and systems?
- How can we effectively align and reduce our cost structure?
- How can we improve our operational actions through the use of real time dashboards and scorecards?
- How can we improve data integrity and increase the transparency of our management information?
- How can we better link our rewards programs to better align with our strategy?
How PwC can help you
- We design or improve the budgeting and forecasting processes.
- We use our proven three-phase approach for successful MI planning and design to create MIs useful for all levels of management decision making.
- The approach is adaptable, and would be tailored to the needs of the client both in terms of depth of scope but also the timeline required to deliver.
- The approach can be applied equally well to the highest level group MI or detailed business unit MI.
- We work together in combined teams to utilise knowledge of local environment, industry experts and technical specialists.
- This approach allows us to deliver comprehensive solutions from the design of MIs up to the implementation.