How successfully do you manage your business? Survey results

Transcription

1 Corporate performance management How successfully do you manage your business? Survey results Anastasia Osipova, Partner

2 Agenda Methodology Executive summary Survey results Conclusion

3 Survey outline Conducted between September 2008 and January 2009 Senior executives of around 400 companies Across Eastern and Western Europe and the CIS 8% of Russian respondents Participants' primary functional role Distribution of Russian participants by industry CFO Head of controlling 4% 20% 50% 52% Financial services Energy, utilities and mining Transport and logistics 10% 21% 41% CEO Other Head of accounting 4% 4% 14% 1 12% 22% Russia the rest Industrial production Retail and consumer Technology, media & telecommunication Health care Other 3% 3% Slide 3

4 Methodology Slide 4

5 Executive summary 61% of Russian companies use KPIs systematically derived from strategy to manage their business 45% of Russian respondents are unsatisfied or very unsatisfied with their company s planning and budgeting processes 59% is the average level of satisfaction among Russian respondents with the accuracy of management data, which significantly lags behind its importance 68% of the management reporting effort in Russian companies is focused on data gathering, calculation and reconciliation rather than analysis 50% of Eastern European companies say their budgeting process is highly or fully integrated with strategic planning 34% of Russian companies use MS Office as the primary tool in at least one key area of performance management Slide 5

6 Align strategy / plan Strategy implementation approaches Which strategy implementation approaches do you use / plan to implement? Strategic development tools and techniques Russia the rest 5 72% 36% 16% 13% of Russian companies use KPIs systematically derived from strategy to manage the business Value drivers Strategy maps Russia the rest Russia the rest 36% 3 52% 51% 29% 24% 28% 41% 36% 39% 20% Systematically derived KPIs Russia the rest 61% 64% 36% 23% 4% 13% Clear Strategy communication Russia the rest 54% 65% 39% 24% 11% Implemented Planned Not planned Slide 6

7 Align strategy / plan Strategic planning and budgeting integration To what extent is your budgeting process integrated with strategic planning? 50% 40% East - 50% West - 68% 40% East - 50% West - 32% of Eastern European companies say their budgeting process is highly or fully integrated with strategic planning 30% 20% 1 18% 22% 29% 23% 21% 10% 0% 10% 9% 6% 3% 1% Not integrated Fully integrated East West Slide 7

8 Align strategy / plan Planning and forecasting processes To what extent are you satisfied with the current planning and forecasting processes? of Russian respondents are unsatisfied or very unsatisfied with their company s planning and budgeting processes the rest Russia Overall satisfaction Clarity of responsibilities Number of iterations Level of detail Level of involvement of operational units Level of automation & user-friendliness of IT tools Timeliness of information provision Overall satisfaction Clarity of responsibilities Number of iterations Level of detail Level of involvement of operational units Level of automation & user-friendliness of IT tools Timeliness of information provision 16% 39% 18% 41% 20% 49% 24% 49% 1 38% 4% 2 43% 15% 33% 43% 25% 42% 32% 46% 2 42% 30% 43% 30% 42% 9% 30% 41% 19% 46% 33% 12% 32% 9% 22% 10% 2 30% 14% Very satisfied Satisfied Unsatisfied Very unsatisfied 2 10% 2 19% 3% 26% 6% 22% 5% 24% 4% 19% 28% Slide 8

9 Current situation evaluate Management reporting activities How is time split between management reporting activities? 80% of the management reporting effort in Russian companies is focused on data gathering, calculation and reconciliation rather than analysis Percentage of time spent on activities 60% 40% 20% 0% 68% 38% Data collection, calculation, reconciliation and structuring 28% 59% Data analysis and interpretation Russia 3% 4% Other activities 59% 32% Data collection, calculation, reconciliation and structuring 35% 61% Data analysis and interpretation the rest 6% Other activities Current Desired Slide 9

10 Current situation evaluate Management reporting activities Do current management information capabilities match your expectations? - is the average level of satisfaction among Russian respondents with the accuracy of management data significantly lagging behind its importance The rest Russia Timeliness of provision of information Accuracy and reliability of information Systematic analysis of changing information needs Costs of report generation Integration of IT systems Accuracy and reliability of information Timeliness of provision of information Integration of IT systems Costs of report generation Systematic analysis of changing information needs Not important Very important Level of satisfaction Importance Slide 10

11 Sustain execute / reward Decision making To what extent do you believe the following factors impede effective decision making? factors stand out from others in the responses of both Russian and non-russian companies Definition/communication of responsibilities, Absence of quality information, Lateness of information Poorly defined and / or understood responsibilities Absence of quality information Lateness of information Poorly defined issue escalation/resolution process Poor presentation of management reports Complex decision making hierarchy Other No impediment Significant impediment Russia Europe Slide 11

12 Sustain execute / reward Employee incentive Which of the following employee incentive schemes does your organisation employ? Profit sharing / Management bonus 74% 4% 22% of Russian respondents said their companies incentive schemes incorporate stock option plans The rest Russia Stock options / Stock awards Bonus bank Non-financial incentives Profit sharing / Management bonus Stock options / Stock awards Bonus bank 25% 36% 40% 11% 75% 81% 7 4% 9% 64% 11% 4% 2% 60% 51% 14% 15% 21% Non-financial incentives 48% 45% Yes Planned No Slide 12

13 Key enabler information technology IT tools for management reporting Which tools do you use for management reporting and risk management and do they meet your company's needs? Planning/ Budgeting KPI System 6% 6% 6% 6% 13% 12% 6% 13% 18% of Russian companies use as the primary tool in at least one key area of performance management therest Russia Risk Management Forecasting Data Warehouse Planning/ Budgeting KPI System Risk Management Forecasting 9% 9% 9% 13% 16% 10% 2% 2% 5% 1% 9% 20% 10% 15% 14% 11% 11% 1% 23% 3% 1% 2 23% 1 3% 4% 3% 16% 9% 1% 10% 5% 6% 3% Data Warehouse 1% 2% 4% 1% 26% 4% 5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Slide 13

14 Key enabler information technology IT tools for consolidation and financial reporting Which tools do you use for consolidation and financial reporting and do they meet your company's needs? The rest Russia Reporting system Reporting s ystem Consolidation Consolidation 8% 8% 15% 8% 12% 20% 10% 1% 2% 8% 11% 20% 15% 33% 8% 12% 3% 3% 2% 3% 2% 3% 4% 2% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Yes No Not stated Slide 14

15 Conclusion Improved performance indicators with an appropriate balance and focus Improved systems and management processes anyone using spreadsheets to support strategic management processes really has a problem now Improved integration between Corporate performance management and risk Slide 15

16 Questions? Anastasia Osipova Partner, Performance Improvement +7 (495) This presentation has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this presentation without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this presentation, and, to the extent permitted by law,, its members, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this presentation or for any decision based on it All rights reserved. refers to the network of member firms of International Limited, each of which is a separate and independent legal entity.