STRATEGIC PERFORMANCE MANAGEMENT (SPM)

Strategic potentials can only be translated into added value and operational excellence through consistent strategy implementation. In strategy implementation, we support our clients with a tailor-made strategic performance management system. The main focus is on three goals:

• Comprehensive financial quantification of strategic objectives
• Linking market-related and financial planning and control systems
• Establishing a comprehensive strategy orientation and refocusing planning on the strategy.

Our approach

A major prerequisite for implementing a strategic performance management system is the existence of a clearly formulated strategy and a market-oriented overall financial target. In speci-fying and implementing the system, we provide support in the following areas:

• Defining an integrated strategic and financial target system
• Identifying performance gaps and analysing them systematically
• Establishing strategy-determined value-driver logic systems and translating them into dynamic simulation models
• Systematic identification, evaluation & control of strategy-induced result volatilities (risk and opportunity potentials)
• Formulating, selecting and prioritising project and measure portfolios and establishing an ongoing implementation monitoring system
• Operationalising strategies by means of measures-based medium-term planning as a starting point for deriving operational budgets
• Implementing a recipient-oriented reporting system to efficiently support decisions in strategy implementation

In addition to designing the individual system elements of strategic performance management, we put special emphasis on their fit with success-critical conditions such as setting incentives aligned with objectives, continuous management processes and a strategy-compliant organi-sational design.

Your benefit

Contrast’s approach in strategic performance management (SPM) is to be seen as an integrating link between strategy formulation and operational implementation. At the end of a project there is a strategic performance management system that helps management to realise sustainable benefit potentials:

• Specifying the strategy by translating it into coordinated strategic and financial objectives (target system)
• Systematically identifying performance gaps, their causes and possible counter-measures (“path to target performance“)
• Commitment to strategies and achieving long-term objectives
• Efficient inclusion of the top-management in planning questions (“eye for the big picture”)
• Flexibility in showing strategic planning variants
• Increased transparency in the business model and its translation into quantifiable value and cost drivers
• Better understanding of the central volatility drivers through comprehensive risk and opportunity transparency
• Continuous strategy orientation in planning and control systems
• Designing incentives aligned with objectives in order to implement the strategy
• Efficient, prompt and recipient-oriented reporting on the strategy’s implementation status
• Consistent and stringent planning logic to translate the strategy into operational budgets
• Efficient and coordinated management processes as a basis for consistent strategy implementation