The
problem for most organizations is that there
is a fundamental disconnect or
mis-alignment between corporate strategy and
day-to-day activities. Strategies,
initiatives, resources and risks are
discussed at the executive level, but
day-to-day
activities are not connected to them.
o
Regulatory >>
landmark legislation and new corporate
governance guidelines
o
Competitive >>
more and different
o
Economic >>
recovering global economy
o
Strategic >>
most companies have already squeezed the
expense side
…Creating unprecedented pressure to drive
profitable growth.
o
Performance metrics not aligned with
strategic business objectives
o
Dependent on lagging, not leading indicators
o
Poorly integrated with other information
o
Far too reliant on financial measures
o
Traditional metric focused approach has
ignored the process and methodology
elements
of performance management
This comes
about because organisations have difficulty
in transforming data into useful information
and in understanding what SHOULD be measured
versus what IS measured.
As a result,
organizations can measure performance, but
they can’t manage it.
That might
explain to some extent why 90% of companies
fail to successfully execute
strategy (per
Fortune Magazine) and fail to drive
breakthrough performance.
Organizations are looking to technology to
help them drive profitable growth. Gale
Daikoku,
of Gartner, was recently quoted as
follows...
“For two
decades technology helped cut costs. Now we
need it to boost revenues.”
