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09 Aug, 2013
In times when talking about budget and performance seems to be in contrast with the purpose of resolving the confusion in the markets and to find solutions to improve unstable periods, I want to emphasize the belief that it is precisely now the right time to start our organizations in a serious program aimed at the Performance Management.
We are in that particular situation where the priorities to face become opportunities to improve the structural capacity of our enterprises.
The quest for transparent results, speed of reaction to change, the simplification of the mechanisms of planning and management encourage companies not willing to indulge further in the creation of a new role, which, joining and optimizing different skills and profiles into a single process, has taken responsibility and coordination, as Chief Performance Officer (CPO).
The CPO’s role consists in coordinating the information technology and organizational processes for the definition of corporate performance, ranging from the definition of targets and business plans, identification and management processes and control architectures, such as budgeting models and business intelligence systems. He is fully entitled to join the Steering Committee, taking its place among the duties of the CFO and the CIO, becoming the official collector of the different perspectives of management and control.
Nowadays many companies have not only an excessive amount of data and indicators, but also control systems, which are stratified in time with specific perimeters, often with large areas of overlap and sometimes discordant models.
A high priority is therefore to select, align and streamline the various metrics with a model of Performance Management that is closely synchronized with the corporate strategy. The serious risk otherwise is that managers continue to use their own measures and KPI, partial and non-harmonized with the rest of the business challenges.