A. Continuous cycle of strategy to execution
B. Integrated EPM system architecture
C. Organisation wide EPM strategy
|Considers activities as series of end-to-end processes, e.g. Strategy to Plan rather than discrete activities like strategic planning, budgeting, etc. It advocates the translation of strategy into tangible metrics, measured and forecasted into the future and ultimately into the reward culture of the organisation to create and deliver value.||Promotes a clearly defined business reference model describing the information needed to drive the business underpinned by a robust, integrated technology framework. The information platform within the framework serves as a data repository linking the EPM & BI applications to the diverse transactional systems within an organisation.||Focuses on identifying important metrics across the entire organisation and linking operational performance to corporate strategy, so that operational teams can understand their contribution to the organisation’s strategic performance.|
Emphasises top-down leadership and a strong governance framework to address EPM’s requirement of a cultural shift from managing by reports and numbers to managing by influencing changes in actions and behaviours.
Your organisation’s mission is the driving force behind everything you and your staff seek to achieve. EPM will look to not only align strategic objectives upwards, but critically downwards throughout the entire organisation, right down to every employee.
The unique approach chosen by PwC balances the importance of strategy development against execution by funneling focus and alignment through five key enablers:
While strategy development is the natural starting point of EPM, PwC recognises it as the start of a continuous loop.
Strategic objectives are only as effective as their execution. So, the planning and budgeting processes, both of which are fundamental to performance management, are targeted specifically in the PwC EPM framework. These processes include:
EPM seeks to mirror your strategic planning process against your risk planning process, with each bolstering the other. Viewed through the EPM model, those activities that create value also have the potential to expose the organisation up to risks.
To protect the value created, PwC seeks to express the key performance indicators (KPIs) and key risk indicators (KRIs) through performance management, and to measure and report against each.
Strategies can sometimes be hard to take onboard by every level of an organisation. To worsen things, KPIs often demonstrate no clear and tangible link or contribution with the strategic objectives. PwC’s EPM framework goes beyond cascading KPIs up and objectives down. It assures an effective performance management through dashboards, technology driven reporting and other such data quality. This gives management unparalleled insight into how strategies are translated into success.
After KPIs and stretched targets are cascaded down, the last remaining variable that will dictate the success of strategic execution is how employees are directed, incentivised and rewarded against the achievement of strategic objectives. Closely linking people performance management with EPM will encourage people on the ground to focus on realising organisational strategies and establish a remuneration process that aptly rewards those who contribute to its achievement.
PwC’s EPM framework uses the remuneration process to close the loop on performance management and hardwire the behaviours of functions, teams and people to activities that contribute to the achievement of strategic objectives.
Technology and data management relates to the Business Intelligence (BI) architecture and interconnectivity of IT systems responsible for supporting strategy execution within an organisation.
The efficacy of decision making is based on the quality, relevance and timeliness of information reported to key individuals. The BI systems in place takes care of capturing, recording and analysing the data accumulated for conversion into useful information for decision making and performance management.
The critical component of any BI architecture will be the tools selected to fulfill the reporting requirements. PwC has extensive experience with all the major suppliers with reference to EPM selection, implementation and project management.
The final dimension of PwC’s EPM framework is operations. The translation of strategy throughout your organisation would be ineffective if not reflected right through to the ground level. Effective performance management stems from linking operations to strategy and optimising operational activities by considering the entire value chain to ensure the organisation is fully aligned to achieving sustainable business performance.
EPM dictates a cultural shift from managing by reports and numbers to managing by influencing changes in actions and behaviours. PwC’s EPM framework encourages the leadership team to manage for performance by:
Managing for performance is typically supported by management reports but to succeed, it demands a structured dialogue to promote continuous performance improvement.
Communication is fundamental to every organisation. By having strategic objectives expressed through EPM, an organisation can have a consistent, valid and effective approach for the leadership team.
Each individual is responsible for strategy execution but the ‘Office of Strategy Management’ oversees the alignment of all management processes within strategy. It safeguards the strategic focus and alignment within the entire organisation. EPM processes comprise: