This PPT slide, part of the 34-slide People Productivity Toolkit PowerPoint presentation, outlines a framework for internal controlling metrics that align with value creation and operational levers. It emphasizes the importance of measuring both external and fundamental value creation, represented by TSR (Total Shareholder Return) and TBR (Total Business Return). The correlation between these metrics is crucial for understanding how they impact overall performance.
At the core, the slide highlights 2 primary measures: profitability of assets and growth in assets. These metrics serve as indicators of financial health and operational efficiency. The slide suggests that organizations should focus on cash margin and asset turns as key performance indicators (KPIs) to drive insights into asset utilization and profitability.
Management applications are detailed on the right side, providing actionable steps for executives. Setting company-wide value creation aspirations is the first recommendation, linking these aspirations to senior management incentives. This alignment ensures that leadership is motivated to pursue strategic goals that enhance value.
The slide also advises assessing gaps between aspirations and actual plans, which can help in cascading these goals down to business units (BUs). This cascading effect is vital for ensuring that all levels of the organization are aligned with overarching objectives. Long-term incentives for BUs are suggested to reinforce this alignment.
Furthermore, determining priority value drivers and evaluating trade-offs is essential for effective decision-making. The slide encourages a directional approach to signal value creation improvement and decomposing aspirations into specific operating metrics. This structured approach allows for better tracking and management of performance against strategic goals. Overall, the slide serves as a guide for executives aiming to enhance organizational performance through targeted metrics and aligned incentives.
This slide is part of the People Productivity Toolkit PowerPoint presentation.
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Human Resources Workplace Productivity Value Creation Key Performance Indicators Leadership KPI
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