Corporate Performance Management

Improving your bottom-line

Your Challenges

One of the determining characteristics of high performing organisations is the rigorous application of an integrated CPM system. This provides a systematic framework for aligning metrics, e.g. key performance Indices (KPIs) with internal accountabilities and rewards, setting common data standards to facilitate flexible linkages across disparate systems (both financial and non-financial), and delivering timely and accurate business performance data which can, among other things, help you monitor and control your cost base.


However, the CPM system is analogous to a finely-tuned engine, i.e. a failure in any one major component will impact the performance of the organisation. Some of the common challenges facing organisations implementing CPM include a lack of clear accountabilities in the context of metrics and business goals, masses of data but limited reliable management information (MI), massive reconciliation efforts to consolidate data, and too many metrics that have evolved over time. These can result in a loss of confidence in MI and lead to management concerns over data integrity. Finance functions may begin to focus on validating data, limiting the time and resources which could be applied to interpreting and analysing data to add value to the business.

Additionally, many global companies operate decentralised management models, devolving performance accountability to business segment/unit management. This creates a real challenge in aligning CPM standards across the business to meet the competing needs of both local business management and group management.

Meeting Your Needs

PwC can help you assess, design and implement CPM frameworks by addressing not only the management processes, but also the content (measures, methodologies, etc.), people, organisational aspects and the underlying technologies. All these help to link your business goals to KPIs, budgets and balanced scorecards, and strengthen accountabilities.

Our technologists can help implement automated KPI monitoring systems and, as part of our integrated approach, we can help you ensure that a cultural change in behaviour occurs to ensure it all happens.

Typically, as part of this process, we also help develop processes to monitor cost drivers in order for you to eliminate excess fat. Often, this results in an added benefit of simplifying complex policies, procedures and processes, and data storage.

Our Experience

Global Pharmaceutical Company
- Realignment of Local vs. Global Metrics
The client, a global pharmaceutical company, had implemented KPIs locally which its senior regional management team felt had become incongruent with its global operations’ business goals.

In rectifying this, PwC was engaged to facilitate a full re-alignment of the Sales and Marketing department’s KPIs. We also played a key role in embedding new metrics into the Planning and Budgeting system. This significantly improved the clarity of accountabilities and alignment of KPIs to business goals.

Global Refining Company
- Implementation of a CPM framework
The client’s weak MI and poor data integrity created significant limitations on management’s ability to run the business. PwC executed two projects that were sponsored by the Chief Operating Officer to eradicate the limitations:
  • MI project that led to the redefinition of financial and non-financial KPIs, revision of the data architecture and establishment of consistent data standards
  • Capital management project that led to significant improvements in control over capital expenditure and revenue expenditure activities