World Class Planning & Performance Management (PowerPoint PPT Slide Deck)

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This product (World Class Planning & Performance Management) is a 43-slide PPT PowerPoint presentation slide deck (PPT), which you can download immediately upon purchase.

This presentation is to introduce planning and performance management, its key elements, and its importance for the organization. In addition, it outlines the importance of a strong controlling function for effective planning and performance management. The document also lays out the key building blocks of a world-class controlling function and best-practice examples, and presents an approach to strengthen your controlling function. The deck has 42 slides and contains detailed notes to the slides.

This comprehensive presentation delves into the top-down identification of value drivers, providing a detailed ROIC tree to help you pinpoint key financial KPIs. It emphasizes accountability across various organizational levels, ensuring that every department contributes to the overall financial health. This approach not only clarifies roles, but also aligns incentives with performance, driving a culture of accountability and excellence.

Key principles for cascading KPIs throughout the organization are meticulously outlined. The document stresses the importance of clear role responsibilities and boundaries, coupled with explicit and simple performance contracts. This ensures that every team member understands their contribution to the company's success, fostering a unified effort towards common goals.

The presentation also highlights the critical responsibilities needed to ensure consistent data definition and tracking of KPIs. It provides a structured approach to financial planning and controlling, integrating nonfinancial KPIs into the data warehouse. This holistic view of performance management enables a more accurate and comprehensive assessment of the organization's health.

Setting targets is another crucial aspect covered in this document. It explores various options, from stand-alone budgets to integrated strategic plans, and rolling forecasts. This flexibility allows organizations to choose the most suitable approach based on their unique needs and market conditions. The emphasis on aligning strategic plans with capital market expectations and industry trends ensures that your organization remains competitive and forward-thinking.

Source: Best Practices in Strategic Planning, Performance Management, Enterprise Performance Management, Performance Measurement PowerPoint Slides: World Class Planning & Performance Management PowerPoint (PPT) Presentation Slide Deck, Documents & Files

PPT SLIDE DEEP DIVES

Strategic Planning and Budgeting Framework at BP Amoco

This PPT slide outlines the strategic planning and budgeting processes at BP Amoco, emphasizing a structured approach to target setting. It is divided into 2 main sections: the strategic planning process and the budgeting process.

In the strategic planning section, inputs such as market expectations, industry perspectives, competitive analysis, and other macro assumptions feed into the creation of a 7-year strategic plan. This plan serves as a foundational document for corporate performance management (PPM). The involvement of peer groups, which consist of business units (BUs) with similar strategic and operational characteristics, is highlighted. Approximately 150 BUs are categorized into 6-12 peer groups, fostering collaboration and shared insights among like-minded units.

The budgeting process is depicted on the right side of the slide. Here, the corporate PPM is again central, with the draft budgets from BUs and peer groups being developed based on the previously established strategic plan. Key elements such as normalized oil prices and foreign exchange rates are considered, along with the establishment of stretched targets for the peer groups and BUs. The process encourages a mutual challenge of budget assumptions among BUs within the peer groups, promoting accountability and rigorous evaluation.

This structured approach ensures that both strategic planning and budgeting are aligned, facilitating a comprehensive understanding of performance expectations across the organization. The emphasis on peer group collaboration and challenging assumptions can lead to more robust financial planning and strategic alignment, making this framework particularly valuable for organizations looking to enhance their planning and performance management capabilities.

Strategic KPI Implementation for Immediate Impact

This PPT slide outlines a strategic framework focusing on the implementation of key performance indicators (KPIs) in the short term. It is divided into 3 main sections: objectives, time horizon, and specific KPIs categorized by product division, regions, and functions.

Under the objectives, 2 primary priorities are highlighted: "Make it a success" and "Preparing for growth." The first priority emphasizes immediate financial targets, maintaining revenue streams, and the swift implementation of mergers. This indicates a clear urgency in stabilizing the organization’s financial health and customer base. The second priority, focused on growth, suggests a more strategic approach that involves medium to long-term initiatives, such as strategy implementation and the development of new products.

The time horizon section distinguishes between short-term and medium-to-long-term goals. Short-term objectives are critical for immediate operational success, while medium-to-long-term goals are necessary for sustainable growth. This dual focus allows for a balanced approach to performance management.

The KPIs are categorized into 3 areas: product division, regions, and functions. For the product division, there are 10-15 KPIs identified, along with additional metrics for personnel. The regional focus includes 15 KPIs, while the function-specific KPIs are tailored to various countries, with an emphasis on key metrics for ten selected countries. This structured approach ensures that performance measurement is both comprehensive and relevant across different operational areas.

Overall, this slide serves as a practical guide for organizations looking to align their short-term actions with long-term strategic goals through effective KPI implementation.

Comprehensive Job Description for Financial Reporting Role

This PPT slide presents a comprehensive job description for a role focused on financial accounting and reporting. It outlines key responsibilities, success metrics, required competencies, and important organizational relationships.

The job overview emphasizes the need for flexible internal management reporting that caters to customer needs, alongside credible external reporting and robust financial controls. This sets the stage for the role's importance in maintaining financial integrity and transparency.

Major responsibilities are categorized into financial accounting and reporting, and audit functions. The financial accounting section highlights the creation and maintenance of accounting systems that ensure accurate and timely data for management reporting and external financial reporting. It stresses the importance of adhering to interbusiness cost accounting standards, which allows for adaptability in response to business changes. The audit responsibilities focus on providing an independent appraisal of the effectiveness of internal controls, underscoring the role's accountability.

The section titled "What success will look like (in next 2 years)" outlines specific outcomes expected from the role. This includes responsive reporting that meets organizational needs, a significant reduction in closing time, and the establishment of a reputation for reliable reporting.

Competencies for success include qualifications such as being a CPA, a clear understanding of corporate data needs, and the ability to plan financial requirements effectively. Key measures and targets provide quantifiable metrics, such as the time taken to close books and the number of discrepancies in data reporting.

Overall, this slide serves as a detailed guide for potential candidates or stakeholders, illustrating the critical nature of the role in driving financial accountability and operational efficiency.

Structured Approach to KPI Implementation and Target Setting

This PPT slide outlines a structured approach for implementing key performance indicators (KPIs) across an organization, spanning from mid-August to November. It is divided into 4 main phases: defining top-level KPIs, cascading these KPIs to various regions and functions, ensuring consistent data definition and tracking, and finally, setting specific targets.

Initially, the focus is on agreeing upon top-level KPIs for the organization, including groups, divisions, and functions. This phase emphasizes the importance of establishing a clear KPI implementation process. The leadership for this phase is designated to the management teams of the respective groups and divisions, culminating in an agreed list of top-level KPIs.

The next phase involves cascading these KPIs to regions and functions. Here, the aim is to agree on KPIs tailored for specific regions and to test the KPI framework in selected countries. This phase also requires the involvement of management teams at the regional level, ensuring alignment with the overall organizational goals.

As the process moves into October, the focus shifts to ensuring a consistent approach to data definition and tracking. Responsibilities for defining and tracking indicators are assigned, and data requirements are established to integrate non-financial KPIs into the management reporting system. This step is crucial for maintaining data integrity and ensuring that all KPIs are measured uniformly.

Finally, in November, the organization sets specific targets, including budget targets and performance contracts. This phase involves collaboration between group financial planning and HR to ensure that performance targets are linked to compensation structures. The entire process emphasizes accountability and clarity in KPI implementation, ultimately driving organizational performance.

Framework for Establishing Strategic Opportunity-Based Targets

This PPT slide outlines critical components for establishing opportunity-based targets, which are essential for strategic planning. At the center, "Opportunity-based targets" signifies the focus of the analysis. Surrounding this core concept are 4 key areas that inform the target-setting process.

First, "Financial market expectations" emphasizes the importance of understanding analysts' forecasts for the company, its competitors, and the broader industry. This includes assessing what growth and return expectations are reflected in the share price. This insight is vital for aligning internal goals with external market perceptions.

Next, the "Industry context" section highlights the need to evaluate expected growth rates across different segments and territories. Understanding competitor aspirations is also crucial, as it provides a benchmark for setting realistic yet ambitious targets.

The third area, "Great companies," prompts an examination of successful peers. It encourages leaders to consider what these companies have done to maintain above-average performance and the types of aspirations they set. This benchmarking can inspire innovative approaches to target setting.

Lastly, "Operating stretch" focuses on the alignment of aspirations with value drivers. It raises critical questions about the baseline performance and the existing performance gap. This analysis helps ensure that targets are not only ambitious, but also grounded in achievable metrics.

Overall, this slide serves as a comprehensive framework for executives looking to set informed, strategic targets that leverage both market insights and internal capabilities. The structured approach encourages a holistic view, ensuring that targets are aligned with broader business objectives.

Approaches to Financial Target Setting

This PPT slide outlines 3 distinct approaches for setting financial targets, each with its own implications and methodologies.

The first option, labeled "Stand-alone budget," focuses on setting annual targets based on previous performance and management's expectations for the upcoming year. This method lacks a long-term perspective, which could limit strategic growth and adaptability. It emphasizes a reactive approach, relying heavily on historical data without considering broader market dynamics.

The second option, "Integrated budget and strategic plan," suggests a more cohesive approach. Here, the strategic plan is aligned with capital market expectations and industry trends. The budget is derived from this strategic framework, ensuring that financial targets are not only realistic, but also strategically sound. This method promotes a proactive stance, allowing organizations to anticipate market shifts and adjust their financial goals accordingly.

The third option, "Budget based on 12-month rolling forecasts and integrated strategic plan," takes a dynamic approach to target setting. It emphasizes continuous development of targets based on the latest market and industry developments. This method allows organizations to remain agile, adjusting their financial objectives in real-time as new information becomes available.

Each approach has its merits and drawbacks, and the choice depends on the organization's specific context and strategic priorities. Understanding these options can help executives make informed decisions that align financial planning with broader organizational goals.

Focused Initiatives for Effective Change Management

This PPT slide outlines a structured approach to implementing a program of change within an organization, emphasizing the need for a focused set of initiatives. Central to this approach is the importance of top management sponsorship, which is crucial for driving the change process. The slide suggests defining a clear action plan that includes specific accountabilities, ensuring that everyone involved understands their roles and responsibilities.

The phrase "Fix the basics first" indicates a foundational strategy where initial efforts should concentrate on addressing core issues before moving on to more complex challenges. This is complemented by the recommendation to create momentum through a few highly visible actions. Such actions are intended to generate enthusiasm and buy-in from stakeholders, making the change process more palpable.

The slide also highlights the necessity of continuous communication regarding the project's progress. Keeping the lines of communication open helps maintain engagement and ensures that all parties are aligned with the objectives. Involving management upfront is suggested to foster ongoing dialogue with the finance function, which can enhance collaboration and support for the initiatives.

The right side of the slide lists first-priority initiatives that focus on key issues. These include organizing a global finance conference to kick off changes, ensuring that the basics are right in critical areas, and emphasizing training, recruiting, and management development. The final point stresses the need to build sophisticated performance and business risk management capabilities, indicating a long-term vision for organizational resilience and adaptability.

Transforming Performance Management: Current vs. World-Class

This PPT slide presents a comparative analysis of the current state of performance management versus an ideal world-class performance management framework. It is structured as a puzzle, illustrating the key components that contribute to effective performance management.

On the left side, labeled "Current situation of performance management," 4 elements are depicted: Role, Structure, People, and Processes & Systems. The visual suggests a lack of clarity or alignment, as indicated by the question mark and the figure of a person appearing confused. This imagery implies that organizations may struggle with defining roles and responsibilities, leading to inefficiencies. The dollar sign and the arrow pointing upwards could signify financial performance, hinting at the need for improvement in this area.

The right side, titled "World-class performance management," mirrors the left, but presents a more cohesive and integrated approach. Each component—Role, Structure, People, and Processes & Systems—appears to fit together seamlessly, suggesting that when these elements are aligned, organizations can achieve superior performance outcomes. The absence of visual confusion indicates clarity in roles and responsibilities, which is essential for driving accountability and performance.

This slide effectively communicates that organizations must transition from a fragmented approach to a more integrated performance management system. The visual metaphor of puzzle pieces underscores the importance of each component working together to create a holistic framework. For potential customers, this insight emphasizes the need to assess their current performance management practices and consider how adopting a world-class framework could enhance their overall effectiveness.

Key Objectives for Effective Planning and Performance Management

This PPT slide outlines the primary objectives of a document focused on planning and performance management. It emphasizes the significance of understanding the core elements that contribute to effective organizational planning. The first point highlights the need to introduce planning and performance management, suggesting that these concepts are foundational to organizational success. It implies that grasping these elements is crucial for any executive looking to enhance operational efficiency.

The second point stresses the necessity of a robust controlling function. This indicates that without strong oversight, planning and performance management may falter. It suggests that executives should prioritize establishing a strong controlling framework to ensure effective management practices.

Next, the slide lays out the key building blocks of a world-class controlling function. This part likely serves as a guide for best practices, indicating that there are established methods that can be followed to achieve excellence in this area. It implies that the document will provide actionable insights that can be directly applied within an organization.

Lastly, the slide mentions an approach to strengthen a client's controlling function. This suggests a consultative angle, indicating that the document is not just theoretical, but also practical. It implies that the reader will gain insights into how to implement these strategies effectively, ultimately enhancing their organization's performance management capabilities. Overall, the slide presents a structured approach to understanding and improving planning and performance management, making it a valuable resource for executives aiming to drive organizational success.

Essential Components of Effective Performance Management

This PPT slide outlines 3 critical components essential for effective planning and performance management. The first element emphasizes the importance of value-focused Key Performance Indicators (KPIs) that are cascaded throughout the organization. This suggests a structured approach where KPIs are not just set at the top, but are integrated at various levels, ensuring alignment with overall strategic objectives. This cascading method can foster accountability and drive performance across departments.

The second component introduces the concept of opportunity-based targets. This implies that organizations should not only focus on historical performance, but also identify and set targets based on potential growth areas. By doing this, companies can adapt to market changes and seize opportunities that may arise, enhancing their agility and responsiveness.

The final element highlights the necessity of a robust planning and performance management system. This system likely encompasses tools and processes that facilitate the monitoring and evaluation of performance against the established KPIs and targets. It suggests a cyclical approach to management, where feedback loops are incorporated to refine strategies and improve outcomes continuously.

Together, these elements create a comprehensive framework for organizations aiming to enhance their operational effectiveness. They underscore the need for alignment between strategic goals and performance metrics, the importance of adaptability in target setting, and the role of systematic processes in achieving sustained performance improvements. This slide serves as a foundational guide for executives looking to implement or refine their planning and performance management strategies.

Critical Elements of Performance Management Control

This PPT slide outlines the critical role of the controlling function in planning and performance management (PPM). It emphasizes 3 main elements essential for effective performance management.

First, the slide highlights the importance of cascading value-focused Key Performance Indicators (KPIs) throughout the organization as a one-time event. This process involves defining KPIs that align with the overall strategic objectives. The role of controlling here is to manage the KPI definition process and support management in refining these indicators through thorough analysis.

Second, the slide discusses the necessity of setting opportunity-based targets. This involves external benchmarking against capital market expectations, competitors, and industry trends. The controlling function supports management in establishing these targets, ensuring they are both ambitious and achievable.

Third, it addresses the management of the planning and performance management system. This encompasses overseeing the target-setting process, measuring performance against the established KPIs, and managing deviations from the expected outcomes. The cyclical nature of this process suggests that continuous improvement is integral to effective performance management.

Overall, the slide conveys that a structured approach to defining KPIs, setting targets based on external benchmarks, and managing performance systems is vital for organizational success. It serves as a guide for executives looking to enhance their performance management practices and align their teams with strategic goals. Understanding these elements can lead to more informed decision-making and improved organizational performance.

Framework for Evaluating Value-Driven KPIs

This PPT slide titled "Defining Value-Driven KPIs" outlines a framework for evaluating key performance indicators (KPIs) that are essential for assessing organizational value. It presents a structured approach that connects various dimensions of performance measurement, emphasizing the importance of aligning these metrics with overall business objectives.

On the left, stock price performance is depicted, suggesting that market perception is a critical indicator of value. This visual representation indicates fluctuations in stock prices, which can reflect investor confidence and overall market trends. The connection to intrinsic value is made through a diagram that likely illustrates discounted cash flow (DCF) analysis, a method used to estimate the value of an investment based on its expected future cash flows. This section emphasizes the need to understand the underlying value drivers beyond mere stock price movements.

Moving to the financial indicators, the slide lists examples such as Return on Invested Capital (ROIC), sales growth, and economic profit. These metrics serve as quantifiable measures of financial health and operational efficiency, providing insights into how well the organization is utilizing its resources to generate returns.

The final section focuses on operating metrics, which may include measures like market share, cost per unit, and on-time delivery. These operational indicators are crucial for assessing the effectiveness of day-to-day operations and their contribution to overall value creation.

Overall, the slide conveys the message that a comprehensive understanding of value-driven KPIs requires an integration of market performance, intrinsic value assessments, financial metrics, and operational efficiency. This holistic view is vital for executives aiming to make informed decisions that drive sustainable growth and enhance organizational performance.

Identifying Risks in Performance Management Processes

This PPT slide titled "What Can Go Wrong" outlines potential pitfalls in the areas of target-setting, performance measurement, and deviation management within an organization. Each section identifies specific problems that can arise and their implications, providing a structured approach to understanding risks in performance management.

In the first section, "Manage target-setting process," the slide highlights the risk of poor communication or management of the target-setting process. This can lead to several targets being established for the same business unit, which complicates accountability. It may also result in inadequate mobilization or incentivization of managers, ultimately leading to the creation of unfeasible targets that do not align with organizational capabilities.

The second section, "Measure performance," addresses issues related to data consistency. It notes that different accounting standards and data sources can create discrepancies, compounded by poor data entry practices. The implications here include wasted management time reconciling figures and making "blind" management decisions without a clear understanding of performance metrics. Continuous monitoring is absent, which can further exacerbate the situation.

The final section, "Manage deviations," points to the lack of rigorous consequence management as a significant issue. This absence can lead to ongoing problems that undermine overall performance, forcing the organization into a reactive mode rather than a proactive one.

Overall, this slide serves as a cautionary overview for executives, emphasizing the need for clear communication, consistent data practices, and effective consequence management to avoid these pitfalls. It encourages a more strategic approach to performance management that aligns targets with organizational goals.