Translating measurements into effective action plans is the key element of fostering managerial execution. Companies do not always know how to effectively connect measuring approaches with processes and projects that form the basic elements of “doing business”.
Instruments are therefore needed that can link company activities to result targets, to simulate the impact on these alternative action plan results, to monitor the progress of action plans and to assess their effective outputs. This also means bringing the world of measurements closer to the business cycles that fuel and characterise decision-making processes.
With our method and experience, we have learned that measurements as such are not important in company management but can become so when you link them to instruments that can guide the decisions of people who are responsible for action at the company.
Our Performance Management is characterised by three fundamental concepts:
“Continuous improvement is preferable to perfection that is continuously sent back.”
This is why an effective performance management system must be developed and designed by starting from individual needs resulting from a focus on change and from the locally generated requirements of an individual function.
To overcome this challenge, you need to implement instruments with different purposes, fields of analysis, and operational approaches that can independently produce results quickly and that are designed according to the principles of continuous learning and adjustment.
The improvement of an individual, a group or an entire organisation in terms of effectiveness and efficiency cannot only be represented by the economic-financial impact. Key Performance Indicators therefore need to be included for volume, times, the number of people, the level of satisfaction, etc. For example, the improvement of company processes targets 3 essential factors of research: (1) the exogenous factor by simplifying the context in which processes operate, (2) the endogenous factor by improving the functions of processes supported by internal drivers, (3) the individual factor which allows optimisation by improving the behaviour of people involved in the process.
Managing performances means being able to control result levers in order to achieve certain objectives.
For organisations, being able to predict future needs in a dynamic context like today’s is a challenge that performance management systems successfully embrace by being developed with operational approaches based on data simulation and modelling. Modern performance management systems actually prioritise the speed of generating results and the ability to adapt quickly to changes over the accuracy of information.
- Incentive Systems – linking company objectives to concrete behaviour and enhancing activities that can make a positive contribution to achieving these objectives
- Cost Modelling – understanding the relationships between the company’s internal and external variables and product, process and market costs
- Revenue Modelling – understanding the relationships between the company’s internal and external variables and revenue trends
- Value Pricing – creating pricing systems by starting from valuable aspects of your system of offers (and not simply from the costs of your offer)
- Process Optimization – understanding the factors that can improve process performances and simulate their impacts when faced with actions for improvement
- Process Redesign – redesigning practices and behaviour in order to guarantee complete consistency with company objectives and full respect with the principles of compliance
- What-if analysis – simulating the impacts on economic-financial results of changing the company’s main decisions