Description
A performance indicator or key performance indicator (KPI) is a type of performance measurement. An organization may use KPIs to evaluate its success, or to evaluate the success of a particular activity in which it is engaged.
Key Performance Indicators (KPIs) and Management Reporting
The purpose of KPIs and Management Reporting
An effective performance measurement system helps to drive an organization towards the achievement of its strategic goals and is the basis for management decision making. Key areas of focus (Strategic Success Factors) are defined to identify areas where a company must be ahead of its competitors to achieve competitive advantage and Key Performance Indicators measure the achievement of strategy implementation. A strategy should be cascaded down an organisation to measure its achievement at both enterprise-wide and business unit levels and to define a decision-making framework and to motivate management and employees.
What are the benefits of effective Management Reporting and KPIs and how can you realize them?
PwC can help you to address the issues by analyzing and redesigning performance measurement in line with company strategy and management needs, giving the following results: ? Ability to provide corporate management and shareholders with timely and accurate information on corporate strategy execution ? Enablement of company performance management, driving to higher overall business performance ? Ability to foresee potential outcomes and to influence events in a timely manner ? Clear understanding of corporate goals throughout the entire organization ? Greater motivation of managers and employees.
Balanced Measures
s rit ical to r Suc cess Fac
Mission & Strategy
C
Common shortcomings of traditional performance measurement
Financial Financial Financial
Key
Operational
Among the most frequently encountered issues in corporate performance measurement are:
? Finance-dominated approach, focused on budget variance analysis ? Lack of support for business decision making ? Lagging – result measures. Historical view of the business ? Lack of clarity and consistency in management reporting procedures,
Performa nce Indicators
Manag ement Reporting
responsibilities, data sources, number and contents of reports
? Inaccurate and untimely management reporting ? Excessive manual efforts in the reporting process that create an
administrative burden.
? Performance measurement not linked to strategic goals ? Insufficient control over corporate strategy execution.
Key Performance Indicators (KPIs) and Management Reporting
An overview of our Project Approach
Stage 1 – Corporate Level
Phase 1 Develop corporate KPIs concept Tasks
?
Who to contact?
PwC’s Management Reporting and KPIs solutions are created by an established team with experience in performance management and management reporting solutions delivery that has comprehensive experience of working in Ukraine Tel: +8 (044) 490 6777 Fax: +8 (044) 486 4558 Anna Ovdienko Director [email protected] Felix Yaroslavskiy Assistant Manager [email protected]
Phase 3 Automate operational KPIs calculation Tasks
?
Phase 2 Design corporate KPIs parameters Tasks
?
Phase 3 Automate corporate KPIs calculation Tasks
?
To have a comprehensive picture of business performance it is important to employ diversified measures: ? Financial / non-financial ? Leading / lagging ? Strategic / operating ? Internal / external.
?
?
?
Analyse corporate strategy; Create corporate strategy map; Identify corporate Critical Success Factors; Develop corporate KPIs.
?
?
Design formulas for corporate KPIs; Define data collection and processing rules; Identify target values for corporate KPIs.
?
?
Integrate corporate KPIs into management reporting structure; Determine system requirements; Implement changes / new system.
Stage 2 – Operational Level
Phase 1 Design operational KPIs concept Tasks
?
Phase 2 Design operational KPIs parameters Tasks
?
Phase 4 Tie motivation system to KPIs Tasks
?
rfo Pe
Con t
rmanc
Ef
e
l ro
veness cti fe
?
?
?
Analyse operational strategy; dentify operational Critical Success Factors; Decompose corporate KPIs; Create operational KPIs list.
?
?
Design formulas for operational KPIs; Define data collection and processing rules; Identify target values for operational KPIs.
?
?
Integrate operational KPIs into management reporting structure; Determine system requirements; Implement system changes.
?
?
Develop KPIs-based motivation programs; Communicate changes to personnel; Execute trial run of KPIs-based motivation system.
PI
Im
Va l u e
p ro ve m e n
t
doc_350220554.pdf
A performance indicator or key performance indicator (KPI) is a type of performance measurement. An organization may use KPIs to evaluate its success, or to evaluate the success of a particular activity in which it is engaged.
Key Performance Indicators (KPIs) and Management Reporting
The purpose of KPIs and Management Reporting
An effective performance measurement system helps to drive an organization towards the achievement of its strategic goals and is the basis for management decision making. Key areas of focus (Strategic Success Factors) are defined to identify areas where a company must be ahead of its competitors to achieve competitive advantage and Key Performance Indicators measure the achievement of strategy implementation. A strategy should be cascaded down an organisation to measure its achievement at both enterprise-wide and business unit levels and to define a decision-making framework and to motivate management and employees.
What are the benefits of effective Management Reporting and KPIs and how can you realize them?
PwC can help you to address the issues by analyzing and redesigning performance measurement in line with company strategy and management needs, giving the following results: ? Ability to provide corporate management and shareholders with timely and accurate information on corporate strategy execution ? Enablement of company performance management, driving to higher overall business performance ? Ability to foresee potential outcomes and to influence events in a timely manner ? Clear understanding of corporate goals throughout the entire organization ? Greater motivation of managers and employees.
Balanced Measures
s rit ical to r Suc cess Fac
Mission & Strategy
C
Common shortcomings of traditional performance measurement
Financial Financial Financial
Key
Operational
Among the most frequently encountered issues in corporate performance measurement are:
? Finance-dominated approach, focused on budget variance analysis ? Lack of support for business decision making ? Lagging – result measures. Historical view of the business ? Lack of clarity and consistency in management reporting procedures,
Performa nce Indicators
Manag ement Reporting
responsibilities, data sources, number and contents of reports
? Inaccurate and untimely management reporting ? Excessive manual efforts in the reporting process that create an
administrative burden.
? Performance measurement not linked to strategic goals ? Insufficient control over corporate strategy execution.
Key Performance Indicators (KPIs) and Management Reporting
An overview of our Project Approach
Stage 1 – Corporate Level
Phase 1 Develop corporate KPIs concept Tasks
?
Who to contact?
PwC’s Management Reporting and KPIs solutions are created by an established team with experience in performance management and management reporting solutions delivery that has comprehensive experience of working in Ukraine Tel: +8 (044) 490 6777 Fax: +8 (044) 486 4558 Anna Ovdienko Director [email protected] Felix Yaroslavskiy Assistant Manager [email protected]
Phase 3 Automate operational KPIs calculation Tasks
?
Phase 2 Design corporate KPIs parameters Tasks
?
Phase 3 Automate corporate KPIs calculation Tasks
?
To have a comprehensive picture of business performance it is important to employ diversified measures: ? Financial / non-financial ? Leading / lagging ? Strategic / operating ? Internal / external.
?
?
?
Analyse corporate strategy; Create corporate strategy map; Identify corporate Critical Success Factors; Develop corporate KPIs.
?
?
Design formulas for corporate KPIs; Define data collection and processing rules; Identify target values for corporate KPIs.
?
?
Integrate corporate KPIs into management reporting structure; Determine system requirements; Implement changes / new system.
Stage 2 – Operational Level
Phase 1 Design operational KPIs concept Tasks
?
Phase 2 Design operational KPIs parameters Tasks
?
Phase 4 Tie motivation system to KPIs Tasks
?
rfo Pe
Con t
rmanc
Ef
e
l ro
veness cti fe
?
?
?
Analyse operational strategy; dentify operational Critical Success Factors; Decompose corporate KPIs; Create operational KPIs list.
?
?
Design formulas for operational KPIs; Define data collection and processing rules; Identify target values for operational KPIs.
?
?
Integrate operational KPIs into management reporting structure; Determine system requirements; Implement system changes.
?
?
Develop KPIs-based motivation programs; Communicate changes to personnel; Execute trial run of KPIs-based motivation system.
PI
Im
Va l u e
p ro ve m e n
t
doc_350220554.pdf