Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Performance Reporting

1,774 views

Published on

In recent years, the value driver-based corporate management became a key factor of management. Quick changes of market and capital requirements, as well as an increasing cost pressure, require short-term response from management. In order to do so, transparent reporting processes, including the crucial indicators and driver of earnings, are the basis for further decisions. These indicators are predominantly non-financials. The corresponding interdependencies are reflected in the performance reporting process and are the basis for discussions between management and operational business.

Published in: Business
  • Be the first to comment

Performance Reporting

  1. 1. > Performance Reporting A BearingPoint Accelerator In recent years, the value driver-based corporate management became a key factor of management. Quick changes of market and capital requirements, as well as an increasing cost pressure, require short-term response from management. In order to do so, transparent reporting processes, including the crucial indicators and driver of earnings, are the basis for further decisions. These indicators are predominantly non-financials. The corresponding interdependencies are reflected in the performance reporting process and are the basis for discussions between management and operational business.
  2. 2. Contents Market Drivers Our Approach Client Benefits References Contact CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< > Performance Reporting | A BearingPoint Accelerator
  3. 3. Performance Reporting | A BearingPoint Accelerator Market Drivers CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< > Corporate internal drivers • The separation of management and operational reporting doesn’t enable efficient and meaningful reporting • Missing connection of financial and operational indicators in order to show interdependencies • Bundle of reports with similar or equal content • Deficits in preparing decision making processes leads to misallocations of financial resources • Lack of transparency and inconsistency in reporting results in a slower response time • Complex corporate landscapes require valid and aligned reporting External market drivers • High volatility influences business areas and business development • Increasing amount of internally produced and externally available data for evaluation • Digitalization leads to changes in corporate management and the way reporting is done • Accelerated market cycles requires faster information access • Faster changes regarding market and capital requirements, coupled with the increasing pressure on costs, require faster and leaner reporting processes Therequirementofhigherdataqualityandtransparency,combinedwithfastreactiontimes,inanincreasinglycomplexcorporate environmentleadtomoresignificantdataanalysisandreporting
  4. 4. CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< > Performance Reporting | A BearingPoint Accelerator Management Reporting • Financially oriented reporting based on the group and business areas • Based on historical data • Management of external and committee reporting • Partial performance indicators Performance Reporting • Focus: financial and non-financial indicators with a significant effect on the company's development • "Link" between the finance-oriented and the operational perspective of business • Forward-looking aiming at forecasting and targets of indicators (focusing on long term revenue development) Operational Reporting • Focusing on operational management indicators • Extensive and detailed presentation of the current situation • Management of internal reporting • Focusing on the interference of the key figures in the operational business processes Market Drivers Ameaningfulperformancereportingprocessisthelinkbetweentheexistingparallelworldsofmanagementandoperationalreporting.In thelongtermitisthedatabaseforreducedfinancialreportingandtheframeworkforthedetailingofindicatorsonoperationallevel. Reporting to shareholders, supervisory board Management Reporting Reporting of segments or business units Performance Reporting
  5. 5. CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< > Performance Reporting | A BearingPoint Accelerator Our Approach Performance reporting – connecting financial and operational information to support efficient and forward-looking performance and business development Facing the increasing information density and complex requirements by focusing on causal relations and the implementation of individual customized standard processes and information expertise Comprehensive and integrative • Integrated and comprehensive consideration of internal and external factors and potentials • Embedding of performance reporting within all divisions • Reconciliation of performance reporting and incentive schemes Efficiency • Guideline for reporting: as much as necessary, as little as possible • Reporting reduction to most content-related and temporal relevance • Providing standard processes with company specific characteristics and flexible handling Sustainable success • Timely information about target achievements and counteractive measures • Visualization of causal relations enabling detailed opportunity-risk analysis, including detailed analysis of causes • Current and future orientation of offered information Value-adding analysis and decision support 35 % Efficiency gains Status Quo Target> Standard processes 65 % Value adding analysis & decision support Strategy development 60% Standard processes 40 %
  6. 6. Client Benefits CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< > Performance Reporting | A BearingPoint Accelerator Realization of standardized structures • Integrated and harmonized data basis and reporting processes • Transparent data flow • Harmonized layouts and reports • Standardized reporting calendar • Clearly defined reporting and approval processes • Reusable structures • Integration of reporting and analytic tasks to avoid “stand alone” reporting Improved and simplified handling • Modern reporting and access options via different devices like iPad or mobile phone • Automated “self-service reporting” • Possibility of drill-down and detailed analysis • Reducing the number of reports and indicators by harmonization and standardization • Increased degree of automation and enhanced system support • Concentration of analytical tasks instead of data preparation Valuebasedandsteeringorientedreporting • Focus on steering relevant information and reports • Consideration of local requirements and divisions • Providing information and causal relations between financial and operational information • At the responsibilities oriented classification • Scenario viewing • Tracking of target achievements and applied actions • Analysis of causes through detailed information Performancereporting–combiningmanagementreportingandoperationalreportingwithinoneconsistentandtransparentbasisof informationandsteering Increasingrequirementsconcerningdataanalysis,value-basedmanagementandchangingbusinessenvironments
  7. 7. References Local Utilities – Development and Implementation of Performance Reporting CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< > Performance Reporting | A BearingPoint Accelerator Challenges • Lack of harmonization of monitoring and reporting in the context of various mergers • New corporate steering model for the whole group • Reorientation and changing regulatory requirements • Objective - Harmonization and standardization - Realigning the business model - Illustration of value drivers and interdependencies - Integration of operational and management reporting Approach Gradual approach based on the requirements of the corporate management board: • Definition of principles for future performance reporting • Development of target reports with regard to content, indicators and reporting cycles • Detailed concept of reporting processes incl. governance, data origin, data commentary and approvals • Implementation within dashboard • Development of a pilot for segments • Rollout for all segments Results • Unified reporting for management board and business • Transparent presentation of interdependencies between operational, non-financial indicators and financial indicators • Patency and successively detailing key indicators • Standardization of data base and transparent data sources • Standardized milestones for the provision of data and clear responsibilities Our client is a local company operating in the utilities industry. The company covers the whole value chain of energy supply from generation to trading, sales and transmission.
  8. 8. Contact Carolin Knoche Senior Manager BearingPoint Germany carolin.knoche@bearingpoint.com Stefani Rahmel Partner BearingPoint Germany stefani.rahmel@bearingpoint.com CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< Performance Reporting | A BearingPoint Accelerator About BearingPoint BearingPoint consultants understand that the world of business changes constantly and that the resulting complexities demand intelligent and adaptive solutions. Our clients, whether in commercial or financial industries or in government, experience real results when they work with us. We combine industry, operational and technology skills with relevant proprietary and other assets in order to tailor solutions for each client’s individual challenges. This adaptive approach is at the heart of our culture and has led to long-standing relationships with many of the world’s leading companies and organizations. Our global consulting network of 9,700 people serves clients in more than 70 countries and engages with them for measurable results and long-lasting success. For more information, please visit: www.bearingpoint.com © 2016 BearingPoint. All rights reserved

×