The Business Issue
Executives are being forced by global competition, investor scrutiny and new regulations to rethink how they systematically monitor and manage business performance and how this is linked to strategic management of the entire enterprise.
There are a number of fundamental questions that need to be answered before an organisation implements an advanced performance measurement system:
- How do we ensure metrics reflect our strategy?
- What should be measured and how do we give the metric meaning?
- How many metrics should the organisation have?
- How frequently should measurements be made and monitored?
- Who in the organisation is accountable for the metric?
- What should the organisation use as a benchmark to know how well it is performing?
Organisations which have attempted to implement advanced performance measurement systems have often encountered many additional problems:
- Business Intelligence (BI) systems generate an overwhelming number of measures
- What is being measured are ordinary metrics and not business critical KPIs
- Metrics are derived from data we already had & are non-critical and not strategy-driven
- Selected metrics have led to localised rather than enterprise-wide optimisation
- Performance measures do not balance short and long term goals
- There is inadequate or insufficient data to support the metrics
- There is a high degree of interrelation between selected performance measures
- Metrics are set in functional silos and not as cross-business enterprise standards
Measures should cascade down through the organisation and performance management pyramid as shown below. Selection of the wrong KPIs can result in counterproductive behaviour and suboptimal results.
Our Expertise
Capgemini’s performance measurement capability lies within our Operational Research (O.R.) Group based in the UK. The group has an unparalleled experience of solving problems and delivering solutions within a wide variety of industry sectors worldwide.
Capgemini Operational Research has supporting competencies in a number of analytical areas that can support and augment performance measurement initiatives including forecasting, business case and statistical analysis.
Our Approach
Capgemini offers expertise at all stages of a performance measurement engagement, from project inception through modelling and analysis to application development and benefits realisation. Our comprehensive approach means we can assist in setting up a new operation or optimising an existing capability.?
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To support client engagements and ensure robust solution development, Capgemini has formed relationships with several leading technology and information providers, such as Oracle, SAS and SPSS.
Business Benefits
Many business benefits to be realised from implementation of an effective performance measurement solution:
- Reduced cost of measurement
- A focus of effort to improve efficiency
- Alignment of all individuals at all levels of an organisation to the same goals
- Clearly defined benchmarks and cascaded targets to create accountability and track progress
- KPIs that are consistent with the vision and goals of an enterprise
- Supports a holistic approach to management
- Balances short and long term organisational goals
Our Experience
Capgemini has successfully delivered performance measurement solutions for a wide range of sectors and clients, as illustrated by our case studies (see below).
Related Success Stories
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