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Performance Management

Many enterprises face the problem not to be able to turn strategic activities into measurable results visible in their balance sheets. This results from initial problems within the management team due to the fact, that the strategy of the company is not defined precisely and each manager has an interpretation of his own.

In case the strategy is not communicated through the organization defining the departments' contribution to success creative employees often "invent" their own strategies that do not harmonize with the management's intentions.

Besides this other well established behaviors like extreme focusing on financial measurements, (e.g. cash flow, ROI, EVA) and overloaded reporting (time consuming, but not spotting the real necessities) or the failure of traditional measurements obstruct the holistic view at the real important results of the company's activities.

Realization follows a five steps process, that improves the performance of your enterprise remarkably:

• Basic check of strategy

• Definition of the strategic cause - effect - relations, development of fitting measurements and their ranges, activities for realization of the strategy with dedicated responsibilities, linking of the measurements

• Definition of the organizational scope, detailed definition of the hierarchy of goals through the organization, training of the responsible employees

• Integration of the balanced scorecard into the commercial- and controlling systems, into variable compensation model for the employees and the existing reporting, thus creating the integrated management system of the future

• Implementation of Balanced Scorecard

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Last update 2012-03-03