A global survey of the maturity of Performance Management processes.
Performance Management comprises a set of management processes, often supported by technology, that help companies to manage and monitor their performance. This vendor-independent empirical study takes a closer look at the current state of performance management processes in organizations. In the current economic climate there are many internal and external challenges facing the Chief Executive Officers (CEOs), Chief Finance Officers (CFOs), Chief Information Officers (CIOs) and all the departments involved in managing an organization’s performance. One obvious effect of these challenges is the rising complexity in managing the business. Thus, this global study identifies the current challenges and future directions of the performance management processes in organizations.
The first part of this study aims to identify the key challenges managers face today and examines which internal and external factors influence the complexity they have to deal with.
We then explore the impact of these challenges on performance management processes. In particular, we take a closer look at the following five processes that support the performance management of organizations:
- Planning, budgeting and forecasting
- Legal/financial consolidation and financial reporting
- Other reporting
- Compliance and risk management
- Strategy management
In the second part we take a look at the key areas for improvement. In particular, we look at speed, efficiency and effectiveness of the processes to pinpoint the major factors that drive organizations to improve their performance management processes. We also ex-plore the improvement priorities and the initiative already ongoing.
In the third and final part we investigate the integration and alignment of the various performance management processes. Integration helps managers to share information and insight across all PM processes to inform decision making in a more unified and comprehensive way. However, different organizational units in charge of different processes, and an increasing number of people and tools used to support performance management often have the effect of driving PM processes apart. More so, if PM is to become a pervasive activity in organizations it has to enable them to better execute on strategy and more quickly respond to the challenges they face. With this in mind, we explore the level of integration achieved so far and identify the perceived value of and priorities for the integration of PM processes.
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