The Performance Management or Performance Management projects that we carry out in DigitalPM are of great importance for the initiatives of the Financial Director.
The most important priorities in this area are addressed entirely through Corporate Performance Management technologies such as budgeting and forecasting, financial planning and analysis; Financial consolidation and control of profitability with solutions such as SAP BPC. DigitalPM best practices in this area include:
CONSOLIDATION AND FINANCIAL REPORTING:
– Tool for global vision of internal relations.
– Essential when the organization is complex in number of companies.
What we get?
1. The consolidated financial statements allow us to know the results of the company in complex structures with related operations and with different operating currencies, allowing us to obtain both a consolidated view and a management-oriented vision.
2. It speeds up the process by providing reliable and useful data to be able to analyze the corporate management, of subgroups and groups, as well as the economic fulfillment of its strategic, budgetary and operational objectives.
3. It responds to the obligations of information of the group with third parties, as well as to the needs of Management.
STRATEGIC PLANNING AND BUDGETING:
– Tool for global vision of internal relations.
– Essential when the organization is complex in number of companies.
What we get?
1. Give greater visibility to the objectives from the main strategic lines to the contribution of front-line managers.
2. The change may affect directly (users) or indirectly (clients), so the accompanying process should be adapted according to the target audience.
3. Provide coherence to the economic budget with respect to the operational objectives.
4. Improve and facilitate the budgetary process to obtain results in the minimum time and with a reasonable effort.
COSTS AND PROFITABILITY:
– Where the organization gets the expected return.
– Follow the obtained returns.
– Analyze the activities that do not add value to the organization.
What we get?
1. Definition of an analytical model that allows to know the profitability of the business / business from the different points of view necessary for the management:
Business lines / product
Markets / geographies
Customer segments / types
Distribution channel, etc.
2. Definition of a model of allocation of costs and revenues to processes, products and services (ABC or traditional type) depending on the business model: where profitability should be obtained.
3. Definition of the profit and loss account model useful for decision making: gross margin, contribution margin, net margin, analysis and monitoring of results.
SCORECARD BALANCE – CONTROL PANEL:
– Where the organization gets the expected return.
– Follow the obtained returns.
– Analyze the activities that do not add value to the organization.
What we get?
1. The Scorecard is a management tool that relates the relevant business information and organizes it for analysis and decisions.
2. It allows the Executive Committee / Councils an improvement in operability by having an easy and fast view of the evolution and results.
3. It gives greater agility and involvement in the decision-making process.
4. It allows a unilateral alignment of the Vision, Objectives, Strategy …
5. It allows obtaining a common structure of reporting within the Company.
