Measure Performance
Performance measurement is the crux of an effective incentive plan. It also has a domino effect on the organization, affecting high performing managers, employees’ ability to achieve results, communication,business strategy, company culture, Wall Street, and many other facets. We have the skills to help our clients navigate this difficult area and improve the effectiveness of performance measurement for the company.
CHECKLIST - IDENTIFYING PERFORMANCE MEASURES
- Capture the drivers of the value creation
- Financial, strategic, operational
- Include key performance dimensions
- Growth
- Profitability
- Productivity
- Asset efficiency
- Market expectations
- Organization
- Operational efficiency
- Help managers make decisions
- Support the company’s culture and behaviors
- CHECKLIST - SETTING PERFORMANCE TARGETS
- The financial plan
- Long-term growth objectives and cost of capital
- Industry economic conditions
- Position within the peer group
- Company versus peer group historical performance comparisons
- Probability of achievement
- Impact on share price (shareholder expectations)
- Feedback from the Board