How to Improve Enterprise Performance Management System Effectively

更新时间:2019-03-28 16:24:00点击:397777 Industry Views

If an enterprise wants to effectively improve its performance management system without making large-scale investments and establishing new IT systems, it needs to be done. That is, enterprises must first jump out and consider issues from a holistic and strategic perspective. For companies, automation and software can only pray for the role of assistance, and only the strategic use of these tools can really take effect.

The Boston Consulting Group (BCG) has worked with different organizations in different fields to help them design new performance systems. According to their experience, a first-class performance management system must include the following five key components.

1. Coordinated and highly relevant KPI indicators. A good performance management system does not measure all data, it should focus on key data and KPIs related to the company's strategic goals. Finding these KPI indicators is the first step in building a performance management system.

This ensures that the performance system does not produce data for the data. We can imagine using this system to build a "universal language" that management can use to lead the business. Ensuring that companies reach a consensus on this unified standard can help the entire organization focus on what matters.

In some companies, data standards used by customers in different brands, regions, and key industries are inconsistent. Although the company has established a central data center, only 20% of the data used internally by the company comes from the center. Therefore, establishing a coordinated KPI standard between different departments can effectively solve this problem.

2. A common data classification system. After finding the key KPIs, we need to classify the data with a unified information architecture and standardized data definitions. This step is to create a “single source of truth” that is comprehensive, timely, and accurate, regardless of where it came from or by whom.

Once the company establishes standards for defining and collecting data, we can automatically match that data to the regular reporting system, freeing the finance department staff to focus on more valuable matters. The ultimate goal of this part is to create a unified data repository where all relevant data is categorized and stored.

3. Integrated management reporting system. Next, we need to establish a standardized information architecture that incorporates financial, operational, and human resources functions into a unified management reporting system. This reporting system includes not only data records of past performance, but also forecasts of future performance; it contains both internally generated data and relevant external data on markets, customers and economic trends. It can scale up and down, providing a corresponding report for each level of the organization's architecture; it provides management with a 360-degree view of the financial, human, operational, and sales sources.

4. Easy to understand data display interface. On top of these management reports, an easy-to-understand data display interface is needed to assist executives in summarizing and refining data. In a sense, these interfaces are more important than reporting because they help executives focus on important information and help them find critical business insights.

A well-designed data interface can present data in a visual form. It demonstrates a richer data base than traditional spreadsheets and reports. It also helps executives establish visual connections between different KPIs and trends.

5. Real-time business analysis capabilities. In addition to standardized management reporting, an excellent performance management system is indispensable for in-depth analysis of in-depth business and feedback on issues from different business managers. Such a system can both enhance the ability of the finance department and the business unit, the former can respond to the latter's request more quickly, while the latter can use the system to analyze the business. There are a lot of software on the market that can generate reports based on similar special requests.

With the widespread use of big data, enterprise business analysis systems will introduce a large amount of external customer information. Especially in the retail industry, companies often capture large amounts of customer information, primarily transaction history that reveals product relevance, promotions, and marketing campaign effectiveness. More and more retailers are beginning to use this data to improve performance, they can improve the effectiveness of promotions through analytics, more accurately pricing, and quantify the value of retail channels.

The performance management system exists only for us to manage better, rather than letting us put ourselves on the shelf and thinking that it is all right when we have the system. Keep in mind that the gap between people and plants is derived from thought. If you abandon this, you can only be bound by the system.

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