Financial Performance Management

How to define the right management setting?

Regardless of whether or not it is formalized, the management framework as a whole is rarely revisited. However, the need for such revision increases as organizational structures undergo transformation and become more complex.

Context and challenges

Changing a management framework disrupts an organization’s governance and requires a special approach to change management.

The elaboration of a management framework starts with the following key questions:

  • How can the management framework be adapted to cope with changes in the company's business model?
  • What type of financial governance should be implemented to manage an international matrix organization?
  • How can we financially motivate existing organizations to collaborate and disseminate expertise from centers of excellence to the majority of Business Units (BU), for example?
  • Which performance indicators should be defined to ensure that the benefits of such a collaboration can be shared?
  • How can the 1+1=2.5 principle be illustrated financially?
  • What should the response to remuneration issues regarding managers' financial targets be in a collaborative matrix organization?
  • How should operational cash-flow targets be defined? Is it possible to define standard rules for rolling out Days' Sales Outstanding (DSO) and the related formulas?

 

How can Argon Consulting help you?

  • Defining or revising the management framework
  • Specifying the performance measurement tools
  • Managing change and supporting its implementation

To succeed, the dedicated change management initiative must be based on:

  • Strong support from the executive management
  • A vision, shared by the executive committee, of the company’s business models and general management framework
  • The involvement of line managers, to ensure that the roll-out of the framework meets operational performance needs