Performance Management – Current Challenges and Future Directions
Authors:
Dr. Carsten Bange - Managing director, BARC
Bernard Marr - Chief Executive, API
Axel Bange - Head of Marketing, BARC
Abstract
Key processes for managing organizational performance include planning and budgeting,
financial consolidation, reporting, compliance and risk management, as well as strategy
management. This global study explores the key challenges organizations face today,
the implications of these challenges on performance management processes, future
process improvement priorities as well as integration levels between the different
performance management processes.
This vendor-independent empirical study is based on 553 responses from organizations across
a wide range industries, countries and company sizes. Most respondents were executives from
departments such as finance, IT and general management. The study was conducted between
March and May 2009.
The following key messages have emerged from this study:
Business
- Acceleration of processes (faster reporting, shorter planning cycles, fast close)
across all existing PM processes is the major improvement priority. - Creation of better links between strategy management and other PM processes is
the major integration priority.
Organization
- PM processes are becoming more complex, with more people involved and an
in-creasing number of tools used. - This requires careful management. It is important to better align IT and business
- so they share a common vision of performance management.
Technology
- Companies do increasingly use more specialized software tools to automate their PM
processes, as opposed to using basic spreadsheet tools such as Excel.- There is an increasing need for integrated technology platforms that allow companies to
manage performance across the different PM processes.
