Critical Elements of Performance Management Control PPT

This PPT slide, part of the 43-slide World Class Planning & Performance Management PowerPoint presentation, 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.

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Strategic Planning Performance Management Continuous Improvement Key Performance Indicators Benchmarking KPI