Value Driver - Executing Performance Management

Abstract

Imagine you were appointed as the new CEO and on your first day in the new job you receive a pile of paper which shows the financial status of the company from every angle but only limited links to your business. During your first weeks you learn that the operational and sales executives have all their own reports which only sometimes help you with possible solutions for problems you identified as key. On your key questions you very often hear “we do not have this report but have the data and it will take us a few days to create this new report”. All this data is available but without targeted compilation you are not informed about your business. With this limited information you have only limited knowledge of what is really going on. But without knowledge how can you form an opinion what needs to be done? And it all boils down to measurement matters: If you can’t measure it, you can’t manage it. Of course you have heard of management concepts like Balanced Scorecard, 6 Sigma or Value Driver Management and you decide to implement these tomorrow. Surprisingly you learn the next day that the former CEO had the same idea and that a working group is discussing this topic since 9 months but you also figured out that they are getting nowhere. Frustrated you decide to make your Corporate Development Manager responsible to solve this problem.