Performance Management Journey, presented by Chris Catto at Business Breakfast Grand Hyatt Melbourne.

1. Performance Management Chris Catto
Journey
Putney Breeze info@putneybreeze.com.au

2. Agenda Chris Catto
• About
• Traditional Finance Teams
• Challenges in Performance
Management
• Changes in Techniques, Tools
and Environment
• Success in Global Economic
Landscape
• Case in Leveraging CPM
• Critical Success Factors
Putney Breeze info@putneybreeze.com.au

3. About Chris Catto Chris Catto
Putney Breeze Advise on:
- Author of Premiership Business • Business Performance Improvement
The Premiership Business Equation for
Business owners & Entrepreneurs • Performance Reporting Best Practice
- Planning & Performance Management • Streamlining Budgeting – Forecasting
in Leading Global Corporations Process
- Director of Putney Breeze Advisors • Moving Beyond Budgeting
- Associate of Betacodex Network • Finance Professional Recruitment
Putney Breeze info@putneybreeze.com.au

4. Traditional Finance Teams Chris Catto
Management Control Systems
Putney Breeze info@putneybreeze.com.au

5. Challenges in Performance Management Chris Catto
• Leveraging information Technology –
connecting content & data with
business purpose
• Optimising incentives collaborating
principles of managers
• Identifying Product Profitability in
new Economy
APMAA Conference 2012
Putney Breeze info@putneybreeze.com.au

6. Change in Technique Chris Catto
Moving from Command & Control to
Enterprise Navigator
• Taylor
• Hoshin,
• Kaizen
• McGregor
Principles Based Management
Putney Breeze info@putneybreeze.com.au

7. Change in Tools Chris Catto
From Gutenberg’s press to telephone to
mainframes to Dot Matrix to iPad
Putney Breeze info@putneybreeze.com.au

8. Change in Competitive Environment Chris Catto
Met by Evolution of Financial Management?
Putney Breeze info@putneybreeze.com.au

9. Change in Global Economic Landscape Chris Catto
Exports as Percentage of GDP
Top 6 in Growth in GDP 60.00
of top 30 by GDP 1991- United States
2011 50.00
China
Japan
China 1829% 40.00
Germany
France
Brazil 508%
Brazil
India 572% 30.00
United Kingdom
Indonesia 561% Italy
Turkey 413% 20.00 Russian Federation
Poland 515% India
10.00 Can ada
Australia 323% Spain
- % Export
1991 1995 1999 2003 2007 2011
Of the 12 Largest countries by GDP 1991-2011 Source: World Bank
In terms of exports as percentage of GDP Germany at 50.21% has out performed
its closest rivals. 54% higher than its closest rival (Australia 21.29%)
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10. German Success in face of adversity Chris Catto
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11. Approximate German Export Split Chris Catto
Large Corporate $1.1T
60%
>250 employees
Medium Sized
30% $700B
250><50 employees
Small <50 employees 10% $200B
Source: World Bank
Putney Breeze info@putneybreeze.com.au

12. Central Tenant of German Success Chris Catto
Story - Mittelstand Philosophy
Central Strategy - Dominate Global Market Niche
1) Stay Close to Customers
2) World Class in Operational Process
3) Best at “Shop Floor Management”
Prof Bernd Venohr – How Germany’s mid-sized companies get and stay ahead in the global economy
Putney Breeze info@putneybreeze.com.au

13. Implications for Performance Management Chris Catto
• Facilitator of Strategic Goals
• Contextual Reporting
• Delivering actionable information
• Decision Support
• Decision Authority at Right Level
• Navigator of Strategic outcomes
In Reference To:
• Customer Satisfaction
• Operational Process
• Agile Decision Making
Putney Breeze info@putneybreeze.com.au

14. Challenges for Performance Management Chris Catto
Value Chain Product Marketing & Service
Production
Development Sales Delivery
CPM/BI Planning
Org Structure & Human Capital
 Leverage Technology  Customer Satisfaction
 Optimise Incentives  Operational Process
 Profitability in New  Agile Decision Making
Economy
Finance – Business Partnering
Strategic Delivery
Putney Breeze info@putneybreeze.com.au

15. Case Study in Performance Management - Chris Catto
Situation
Industrial Equipment
Increasing Import Competition
Supplier
Losing Market Share
Industrial Domestic Servicing
Poor Customer Experience
Decision Authority -
Centralized
Poor Reporting Infrastructure
Inability to react - Stemming from Poor CPM Infrastructure
Putney Breeze info@putneybreeze.com.au

16. Case Study in Performance Management - Chris Catto
Action
Clarify Ascertain and Decentralise Decision
Align
Agree Making
CPM/BI
Identify Value Customer Focus
Planning
Creation Decision Authority
Measures
Operational
Workflow Instil Accountability for
Embed data decision making in best
Organisational Quality interest of Company
Structure Maintenance
Processes
Align Recognition &
Reward
Goal – Increase customer satisfaction while improving cost base
Putney Breeze info@putneybreeze.com.au

17. Case Study in Performance Management - Chris Catto
Outcome
Improve Employee Increase Customer Enhance Organisational
Engagement Responsiveness Visibility
Turn around a significant loss making position
Achievement – Leverage CPM for increased transparency, agile decision
making, to improve customer outcomes.
Putney Breeze info@putneybreeze.com.au

18. Critical Success Factors Chris Catto
Clear Market Segment Focus on Customer Empower and Engage
Specialisation Satisfaction Right People
Clarity in Management Reporting
KPIs that Create Customer Value
Forecast and Target Relative Measures of Success
Putney Breeze info@putneybreeze.com.au

19. Chris Catto
Thank You!
christopher.catto@putneybreeze.com.au
Associate Betacodex Network – betacodex.org
Putney Breeze info@putneybreeze.com.au