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Metrics
that Matter
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What is CPM?
Definitions proliferate. So do
approaches. Consider this
definition, which links strategy
to performance and provides for
continuous improvement:
Corporate performance
management encompasses
all the processes,
information, and systems
used by managers to set
strategy, develop plans,
monitor execution, forecast
performance, and report
results with a view to
achieving sustainable
success no matter how
success may be defined.
ALIGN
Strategy
Plan
AI
ST
Me
as
CPM
Strategy first
SU
Re war
LUATE
EVA
e
ur
ig ht
Ins
E x e c u te
Key Enablers:
Culture
Governance
Data management
Technology
Process
Metrics that Matter PwC | 3
Continuous improvement
A well engrained CPM programme is the best way to ensure
continuity of operations. For example, in turnaround situations, a
charismatic leader may come in and resurrect a facility or business
unit, but when they move on to a new challenge the operation
lapses back into its old ways. If the company has established a
rigorous framework with a clear strategy, the change can be made
permanent, in anticipation of changing leadership.
There should be active debate across all phases of the process. This
isnt a matter of corporate headquarters developing a strategy and
depositing it on business managers to execute. Managers across
the company have to be engaged in the process, and commit to
implementing the strategy and achieving its goals.
The pay-off
Companies that undertake a CPM
programme with a clear understanding
of its challenges can reap enormous
benefits including:
Clear agreement among leaders on
both strategy and true drivers of the
business
Clear links and alignment between
strategy and performance
A
finance department devoted to
analysis and decision support vs. data
gathering and checking
T
imely and useful reports and insights
L
ower costs and less complexity
preparing plans and reports
C
lear understanding among
executives, managers and employees of
whats expected of them
Improved agility
A
compensation and reward system
based on performance that advances
the strategic objectives
A
process that encourages continuous
improvement
people forget that they are changing processes that may have been in place for decades,
people have a natural desire to please everyone with the new process, which isnt possible,
organisations sometimes believe that a new software application is the CPM process itself,
and ignore the necessary people transition steps,
organisations sometimes underestimate, or even forget, to budget for the costs of
managing the people and culture change process.
Executing a transformation such as CPM requires dividing a large task into practical,
iterative steps that achieve measurable results and build momentum.
Signs of progress
www.pwc.com.au/consulting
Martin Green
Partner
0412 866 617
martin.green@au.pwc.com
Paul McMahen
Partner
0419 495 984
paul.mcmahen@au.pwc.com
Daniel Bruce
Director
0417 674 245
daniel.bruce@au.pwc.com
Silvio Giorgio
Director
0457 306 904
silvio.giorgio@au.pwc.com
Sheetal Patole
Director
0414 257 516
sheetal.patole@au.pwc.com