6 steps for linking Corporate Strategy to the Buget

7/29/2019 6 steps for linking Corporate Strategy to the Buget

1/22

6 steps for linkingcorporate strategy

to the budget

Inor PM Strategic Management > Whitepaper

Infor PM

The budget is supposed to be the tool by which an organisationtransorms its strategy into action. Unortunately, up to 60percent o organisations do not link their corporate strategy totheir budget. This paper will show you how to link these relatedmanagement processes and strengthen your businessperormance management capabilities.


2/22

Inor is in no way committing to the development or delivery o any specifed enhancement,upgrade, product or unctionality. See disclaimer paragraph contained herein.


2

Table o contents

Why budget? 3The role o budgeting in perormance management 4Best practices in strategic and operational planning 5The process or linking strategy to the budget 7

Step 1: Defne key objectives 7Step 2: Identiy strategies and impact 7Step 3: Document assumptions 8

Step 4: Develop tactics and high-level operational budgets 8Step 5: Assess and mitigate risks 9Step 6: Check the plan or completeness and fnalise it 9

Cause and eect visibility and the role o technology 10Creating the strategic plan with Inor PM Strategic Management 10Creating the operational plan and linking it to the Budget 13Reviewing the operational plan 15Monitoring actual perormance 16

Why linking strategy to the budget makes sense 20Why Inor PM? 21


3/22

Why budget?

Ask any three people in an organisation why they budget and you are bound to get three dierent answers. They usuallyinclude such statements as, It is something we do every year, It is a big stick we use to cane those who dont perorm, andIt is the mechanism or setting the managers bonuses. Is this really the intended purpose o budgeting? Consider thetypical budgeting cycle. It lasts our monthsup to 25,000 person-days per year or the average billion-dollar company1 and starts with senior managers asking the rest o the organisation to guess the fnancial numbers that they already holdor next year. That guessing is acilitated by a set o spreadsheets that are handed out to budget managers or completion.Once completed, the spreadsheets are returned and numbers are consolidated, only to reveal that the budget managers

guesses werent right.

So the second round starts with senior managers asking budget managers to guess again. This time, the budget managersare now ocused on what set o numbers senior managers hold and whether they can guess the right ones. Strategy thehow o achieving the numbers has been replaced by a numbers guessing game. I the organisation is ortunate, thensenior managers will reveal their guess by doing a top-down pass to the budget holders who now have a great excuse ormissing the budget: it wasnt their guess.

With this type o process in place, it is no wonder, then, that no one says they budget in order to direct the way in which theirorganisation will achieve its strategic goals the intended purpose o the budget. According to data cited by Kaplan andNorton, creators o the Balanced Scorecard, 60 percent o organisations do not link strategy to their budgets. 2 For budgetingto become the relevant process it was meant to be and can be, this gap must be fxed.

1 Loren Gary, Why Budgeting Kills Your Company, Harvard Business School Working Knowledge, August 11, 2003 (http://hbswk.hbs.edu/).

2 Robert S. Kaplan and David P. Norton, The Strategy-Focused Organisation (Boston: Harvard Business School Press, 2001), p. 274.



3


4/22

The role o budgeting in perormance management

The budget is similar to a cars gearbox: it doesnt work in isolation. A gearboxs unction is to transer the power o an engineto a chassis so that the driver can move towards a predetermined destination. I the gearbox is designed without reerence tothe engine that will power it, the car wont work and the driver wont go anywhere. Similarly, i a budget is designed withoutreerence to the strategies it is supposed to support and the resources available, the corporation will not move towards itsdesired goals.

Budgeting is part o a larger, closed-loop process called perormance management. Perormance management is a holistic

approach to the way organisations direct and manage resources to achieve objectives. In the context o perormancemanagement, budgetings central role is to support execution through the allocation o resources to the activities that drivevalue. Jack Welch suggests that budgeting can be a productive and wide-ranging, anything-goes dialogue between the feldand headquarters about opportunities and obstacles in the real world i organisations concentrate on two questions: Howcan we beat last years perormance? and What is our competition doing, and how can we beat them?3

The answers to these key questions typically appear in a strategic or operational plan, against which budgets can be set andmonitored or eectiveness. But i that plan is vague or incomplete, the resulting budget will not help the organisationimplement its strategy.



4

3 Jack Welch with Suzy Welch, Winning (New York: Harper Business, 2005), p. 197.


5/22

Best practices in strategic and operational planning

Most organisations have plans. There is, however, a huge dierence between a good plan and a bad plan. A bad plan, orexample, is one that consists only o costs and revenues. This plan provides no guidance or the organisation regarding howit is to achieve the revenue targets. There is no linkage between the high-level goals and the day-to-day activities necessaryto achieve them.

Perormance management is all about managing the activities that generate results. Those activities should directly supportthe organisations strategic objectives. Thereore, a good plan acts as a road map, showing the organisation how it should

move rom its current level o perormance to the desired level o perormance, based on the perceived economicenvironment. The plan accounts or the activities, dependencies, assumptions, time scales, and resources necessary tosupport an overall strategic objective.

When one looks at best practices studies such as those conducted by The Hackett Group, an Answerthink company, andresearch reported in the book The Strategy Gap, eight planning best practices o high-perormance organisations presentthemselves:

1.Good plans answer key directional questions. Some are, Where are we going?, How are we going to get there?, andWhat happens i things do not turn out as planned? High-perorming organisations do not assume that Plan A will alwayswork. Instead, they prepare alternatives in case they are needed.

2.Good plans typically address three activities. They are (1) how the organisation will maintain current operations, (2)how it will improve the e ciency o current operations, and (3) which new ventures or initiatives the organisation willimplement. In this way, any change in perormance can be assessed in terms o the type o activity.

3.Good plans and organisationsare focused. High-perorming organisations do not plan in detail. For example, theymay plan around 40 accounts compared with 220 accounts or the average organisation. More detail does not equal moreaccuracy. More detail does, however, negatively aect the time available or analysis.

4.Good plans include all aspects of the business. In addition to detailing how goals will be achieved, good plans alsodescribe how the organisation can continue to be eective and generate programs into the uture. In Norton and KaplansBalanced Scorecard methodology, these areas orm part o the internal business process and learning and growthperspectives. Interestingly, this means that many o the measures within a plan will not be fnancial. Employee knowledge,customer relationships, and the culture o innovation may create the bulk o value or any organisation. In act, this valuecan be as much as 75 percent o the total value o the organisation.4 This is perhaps the greatest reason why organisationscannot use their general ledger to collect and hold a perormance management budget.



5

4 Paul R. Niven, Balanced Scorecard Step-by-Step or Government and Nonproft Agencies (Hoboken, New Jersey: John Wiley & Sons, 2003), p. 9.


6/22

5.Good plans link strategies to activities. Activities in a high-perorming organisation are linked into a cause and-eecthierarchy (Figure 1) because the achievement o an objective is the result o doing the right things well. Activities as wellas their impact on achieving strategic goals are monitored. By understanding these relationships, organisations begin to

understandand can build onthe true drivers o success.

Figure 1. Good plans establish cause-and-effect linkages.

6.Good plans are measurable. Objectives and strategies have measures o success, while activities have measures oimplementation. In this way, the completeness o an activity can be correlated with the success o an objective.

7.Good plans include assignments for accountability. In high-perorming organisations, specifc people are maderesponsible or individual activities. They are empowered, rewarded, and have control o the resources to ensure thedelivery o the activity.

8.Good plans include the recording and monitoring of assumptions. High-perorming organisations monitor a rangeo business assumptions that are tied to the targets set or corporate objectives. I the organisation discovers that theirbusiness assumptions are incorrect, they reconsider the associated plan targets and adapt accordingly.



6

Strategy 4Strategy 3

Initative 6Initative 5Initative 4

Mission

Objective 1

Strategy 2Strategy 1

Initative 2Initative 2Initative 1

Objective 2


7/22

The process or linking strategy to the budget

Given the preceding best practices, it is obvious that the creation o a good plan requires ar more than just collecting a set ofnancial estimates. To achieve a best-practices plan that is linked to a budget, use the ollowing six steps:

Senior Management (Corporate) Activities1. Defne key objectives.2. Identiy strategies and impact.3. Document assumptions.

Operational Management Activities4. Develop tactics and high-level operational budgets.

Management Review Activities5. Assess and mitigate risks.6. Check the plan or completeness and fnalize it.

Lets look more closely at each one.

Step 1: Define key objectives

The frst step, a senior-executive activity, is the setting o short-and long-term objectives or each portion o the strategicplan. In Figure 2, the objectives are revenue growth and operating e ciency. Executives also assign a value (i.e., a measure)that denotes the success o each objective. Most organisations establish between fve and seven objectives.

Step 2: Identify strategies and impact

The second step, also or senior executives, is to describe the strategies that, when executed properly, will enable theorganisation to achieve its objectives. For example, in Figure 2, the strategies or obtaining the revenue growth objectiveinclude maintaining the base (measured by number o distributors maintained) and achieving new sales (measured byrevenue rom new contracts).

Executives should assign and record the percentage weight (i.e., the inuence) each strategy has on achieving an objective.The total o all strategies or a given objective must equal 100 percent. Team members use their experience and businessunderstanding to assign the relative importance o each strategy.

Next, the executive team should note which department(s) is responsible or implementing each strategy. The team alsoshould determine how they will measure the success o each strategy.



7


8/22

Figure 2. Defining objectives and strategies.

Step 3: Document assumptions

Next, senior executives document the key assumptions and measures about business environment actors that could aectthe organisations ability to successully achieve its strategic objectives (Figure 3). I the strategy is to control costs, orexample, one assumption might be that ination remains steady (the assumption) at two percent (the measure). I theobjective is revenue growth, an assumption could be that the number o distributors remains the same in the coming year,whatever that number may be.

Figure 3. Documenting assumptions.



8

Name Object Measure Wgt

Unit(s)

Assigned Responsibility

Strategic Plan ROCE

Revenue Growth Objective Revenue Targets 40

Maintain Base Strategy No. o distributorsretained

60 Marketing

New Sales Strategy Revenue rom newcontracts

40 Salesunits

Operating E ciency Objective Costs as % o turnover 40

Control Costs Strategy Costs at same levelas last year

35 All

Retailer Mindshare Strategy No. o distributorssigned up per retailer

35 Salesunits

Internet Sales Strategy % goods sold viawebsite

30 Marketing

Name Object Measure WgtUnit(s)

AssignedResponsibility

Strategic Plan ROCE

Revenue Growth Objective Revenue Targets 40

Maintain Base Strategy No. o distributorsretained

60 Marketing

Satisfed Customers Assumption Customer satisactionrating

New Sales Strategy Revenue rom new

contracts

40 Sales

unitsMarket Growth Assumption Market Size


9/22

Step 4: Develop tactics and high-level operational budgets

At this point, senior executives give the plan to the operational managers, who are responsible or implementing thedocumented strategies. For each strategy, operational managers must develop tactics to implement their part o the

strategic plan. For each tactic they should record the ollowing:

A measure that will be used to monitor the implementation o the action. The weight (i.e., impact) o each tactic on achieving the success o the strategy. The person responsible or carrying out the action. The time scale being set (i.e., the start date and the duration, because not all tactics are o the same duration). The requency o measurement (e.g., calls per hour, revenue per month). The type o activity (i.e., whether it is an activity or sustaining the business, improving the e ciency o an existing

activity, or something completely new). This delineation will help to identiy what kinds o activities are having the mostimpact.

The estimated cost and revenue impact o executing each tactic. Look at these fgures by major cost groupings (well callthese variables later on) such as salaries, material costs, equipment, etc.

In Figure 4, the objective is revenue growth and the strategy is to maintain the base. Marketing is responsible or executingthis strategy. The operational manager rom marketing has recorded three supporting tactics: a communication program, aconerence, and a loyalty program.

Figure 4. Developing tactics.

Step 5: Assess and mitigate Risks

Once operational managers have developed their tactics, the completed plan can be assessed. Ask the ollowing questions:

Is the plan realistic? Make sure that the planned tactics will really help to make the strategy successul. Is the plan aordable? Make certain that the fnancial benefts will outweigh the costs. What risks do you run in implementing the plan and how can you negate those risks? How ar will you let variances go beore taking action? Setting up best case, expected, and worst case scenarios or

each measure can help support those decisions. What alternative plans are there or overcoming the biggest risks? The organisation may need to create an alternate

version o the complete tactical plan.

Step 6: Check the plan for completeness and finalize it

The last step is to come to agreement on the amended tactics and the costs/revenues assigned to each activity. Once

completed, the plan can now serve as the starting point or a more detailed budget breakdown, i required. The high-levelcosts and revenues rom the plan become budget targets.



9

Name Object Measure WgtUnit(s)

AssignedResponsibility Freq.

Start Date

and Duration

Strategic Plan ROCE Annual From 2006

Revenue Growth Objective Revenue Targets 40 Qtr From Qtr 1

Maintain Base Strategy No. o distributors

retained

60 Marketing Qtr From Qtr 1

Satisfed Customers Assumption Customer satisactionrating

Qtr

CommunicationProgram

Tactic Response rate perissue

40 Marketing Geo Warren Month Jan 2006 4

Conerence Tactic No. o attendeessigned up

20 Marketing Jenny Chaucer Month Apr 2006 3

Loyalty Program Tactic No. o distributorssigned up

40 Marketing Jenny Chaucer Month Apr 2006 9


10/22

Cause-and-eect visibility and role o technology

You have a plan. You have a budget that supports it. Only one thing is missing: a way to easily view and analyse the cause-and-eect relationships between all the plan elements and the resources that support them. This is a common complaintamong senior executives who are responsible or managing and reporting on the execution o corporate strategy.

Technology oten complicates the situation. For example, organisations typically create their strategic and operational plansusing a word-processing application. The documents are owned and stored by a single user, cannot be easily updated tosupport the monitoring process, and have no analytical or version control acilities. Similarly, organisations may use

spreadsheetsstill the most popular tool or collecting fnancial datato create and maintain their budgets. Althoughspreadsheets are much easier to update than text documents and they may provide analytical capabilities, they typicallycannot handle the sot side o the plan such as descriptions, comments, nonfnancial measures, and the impact ocause-and-eect relationships. As a result, these documents do not provide a clear and visible way o showing how useractivity is impacting both fnancial results and strategy.

In recent years, there have been a number o breakthroughs in the way technology can be applied to perormancemanagement. The ollowing example uses Inor PM (Perormance Management) sotware to illustrate how technology canimprove the visibility o the cause-and-eect relationships o corporate strategies, day-to-day activities, and the resourcesthat support them.

Creating the Strategic Plan with Infor PM Strategic Management.

Inor PM Strategic Management capabilities enable senior executives and operational managers to work together in creatingplans. It supports a range o management methodologies, including the Balanced Scorecard, as well as allows organisationsto customise a methodology to suit their needs.

Application users are identifed through a log-in procedure that governs what actions they can perorm and what level odetail they can see. In the ollowing example, the user has been defned as a planner, which allows him to create andmodiy plans. He creates plans in Inors application by linking plan objects, the building blocks o a corporate or operationalplan. For our sample organisation, fve objects have been established (see Figure 5). Later in the process, a variable screenwill be attached to each object. The high-level budgets are attached to these screens, enabling people to link budgets to thestrategic plan. You will see how this is done later in this paper.



10


11/22

Figure 5. Establishing plan objects.

Objective

This object represents the high-level objectives or the organisation, such as proftable growth,

operating excellence, and brand leadership.

StrategyThis object represents specifc strategies and associated key perormance indicators that will allow theorganisation to achieve its objectives.

TacticThis object represents action programs that, when implemented, will allow the organisation to executeits strategies.

RiskThis object represents risks that could potentially aect perormance and, thereore, should bemonitored.

AssumptionThis fnal object represents assumptions made during plan development. Assumptions are reviewed inconjunction with plan results and are adjusted i data proves the assumptions to be alse.

Inor PM Strategic Management supports a multistage approach to developing plans. Senior executives establish thehigh-level objectives and strategies to be adopted over the coming years. They communicate the plan to operationalmanagers who then develop the operational plan that links detailed activities or the year to the corporate strategy.

Using Inors solution, people physically create the plan by dragging and dropping plan objects into a cause-and-eectstructure. In the ollowing example (Figure 6), the executive team has identifed our main objectives: (1) operatingexcellence, (2) maintaining existing business, (3) proftable growth, and (4) brand leadership.

Figure 6. With Infor PM Strategic Management, plans are created by dragging and dropping objects into a cause-

and-effect structure.

Next they link each objective to the strategies that describe how the objectives are going to be met. For example, themaintain business objective will be achieved through tactics designed to retain customers and control costs. Proftablegrowth will be attained through sales eectiveness, operating e ciency, and new product launches.



11


12/22

The team assigns properties to each objective and strategy. In this example (Figure 7), according to the assigned properties,the retain customers strategy starts in quarter one and continues or the next 12 quarters. The strategys success will bemeasured by the number o customers with repeat orders. Geo Warren will be responsible or the successul execution o

this strategy.

In addition to assigning properties, organisations can attach documents and links to websites and other supporting systemsto each object, urther clariying the objects purpose. A ag (triangle) on the let edge o an objectsuch as the one shownon control cost in Figure 7indicates that there is an attachment.

Figure 7. System users assign properties to each objective and strategy.

Once the strategies have been established, the senior management team assigns responsibility or implementing eachstrategy. They do this by simply selecting each object and associating it with the relevant department or departments. InFigure 8, management has assigned retain customers to the marketing department.

Figure 8. Senior management assigns responsibility to departments for executing strategies.



12


13/22

Next, the organisation assigns perormance targets to each objective and strategy. Measures can be logical (e.g., yes or no)or value based (e.g., a number, a percentage, a monetary value). When setting up these measures (Figure 9), the systemuser must tell the program how a measure is to be ormatted (e.g., percent), the desired direction (e.g., increasing sales),

and how results are to be accumulated over time and department (e.g., summed).

Figure 9. Assigning performance targets for objectives and strategies.

Multiple targets can be set or each measure. For example, the organisation can defne expected and best case measuresor a strategy. Inor PM Strategic Management also captures actual results, which then can be compared to planned results.

The high-level plan is complete. Senior management now can hand it o to operational managers. They will develop theoperational plan that will show exactly how the companys strategy is to be executed.

Creating the Operational Plan and Linking It to the Budget

In this process, operational managers attach tactics or action programs to the defned strategies. When they log into thesystem, they see only the strategies that have been assigned to them. In Figure 10, or example, the marketing manager canview only his portion o the plan.



13


14/22

Figure 10. Operational managers can work with only the portions of the plan assigned to them.

For each tactic, the owner defnes the person responsible, the start date, and the type o program, just as the seniormanagement team did in Figure 7. As each tactic is created, users also can enter high-level budget estimates or eachinitiative (Figure 11). This is the point at which the high-level budget is linked to the strategic plan. The variables (i.e., keybusiness metrics) shown in Figure 11 are defned by the senior management team, but operational managers enter theestimates or each activity that they defne. The system will consolidate these budget estimates, enabling the departmentalmanagers to see how defned activities will impact revenue and costs.

Figure 11. Linking the operational plan to the budget.



14


15/22

Reviewing the Operational Plan.

Although operational managers can only see the strategies and tactics that directly aect them, senior managers can reviewthe entire plan (Figure 12), including detailed operational tactics.

Doing so will help them assess whether the plan is likely to work.

Figure 12. Reviewing the entire plan at a glance.

The team also can view total costs and revenues by any combination o department objective, strategy, and tactic byselecting one o several built-in reports (Figure 13) that come with the system. At this point, these costs and revenues

become targets or a more detailed budgeting process, i required.

Figure 13. Built-in reports.



15


16/22

Monitoring Actual Performance.

As tactics are executed, the organisation must monitor various fnancial and nonfnancial results.Inors solution can download these results directly rom supporting systems such as general ledgers, ERP systems, and

data warehouses. Data can be presented as a set o fnancial reports, tables, graphs, and more. Inor PM StrategicManagement also comes with a range o built-in reports that compare actual results against the planned results, helpingsystem users determine whether the plan is working. From within these built-in reports, people can drill down into thesupporting systems to perorm urther analyses. These reports are exible in that they can be tailored by end users, who cananalyse measures by any object property. For example, a senior manager could look at the results or all strategies assignedto a certain individual, one o the properties established during plan creation.

In addition, Inors application automatically supplies two perormance measures. The frst is outcome, which shows howclose actual perormance is to the target levels that were set. The second is activity, which showsat objective/strategylevelhow well the supporting programs have been implemented. With these two measures, the system is able to giveusers a measurement o how goals are being met through user activity.

Lets look at some o the built-in reports that Inor PM Strategic Management oers.

Plan Overview.

The plan overview report shown in Figure 14 shows the cause-and-eect linkage between objectives, strategies, and tacticsat the corporate level. Each plan object is colour-coded to show the current outcome value o the actual versus expectedtarget or the third quarter o 2005. In other words, the colour-coding tells the reviewer how close the organisation came tohitting the target. The thin bar underneath each object serves as a visual thermometer o completeness. Managers canquickly identiy what is working and what isnt.

Figure 14. At a glance, people can see the entire plan, understand whether planned activities have been

implemented, and identify areas where results are falling short of organisational goals.



16


17/22

Performance Results.

The perormance results report (Figure 15) enables managers to see the relationship between activities (i.e., tactics) andoutcomes. In other words, the report reveals whether activities are actually being implemented, and whether they are

contributing to the achievement o the high-level goals. This report shows actual and target values, the outcome (i.e.,whether the organisation achieved the perormance goal), and the activity (i.e., the weighted measure that indicates theimplementation progress o initiatives).

Figure 15. Performance results report.

In this example, the objectivebrand leadershipis below target at 66 percent, yet the tactics established to achieve thisstrategy have been ully implemented at 129 percent. This indicates that something else is impacting this objectivesomething that has not been thought about or planned. In contrast, another strategy, retain customers, is ahead o target at101 percent, yet only 88 percent o the supporting activities have been implemented. This could indicate that the target wasset too low or that the tactics do not have to be completed to the depth planned. As a result, the organisation could moveresources rom these programs to others that are alling behind.

Trends.

When investigating perormance, organisations can use the Inor solution to see whether a particular result is better or worsecompared with the previous period. They do this by looking at the trends report (Figure 16). This report shows actual andtarget values, along with an icon that indicates perormance compared toin this casethe previous quarter. The report alsoshows who is responsible or each component o the plan. In this example, sales training is below target. Harry Manning

has responsibility or it. To investigate what else Harry Manning may be working on and the results, the system user couldselect (i.e., click on) Harrys name and then select the responsibilities report rom the let-hand column o the screen.



17


18/22

Figure 16. Trends report.

Responsibilities.

The responsibilities report (Figure 17) reveals a number o issues associated with Harry. Inor PM Strategic Managementallows usersHarry or his boss, or exampleto enter explanations in the orm o notes and discussions. It also allows themto attach status or correction plans.

Figure 17. Responsibilities report.

This sample report also reveals that the recruit locally tactic has not been ully implemented. To fnd out what impact thiscould have on the overall strategic plan, the user would select the tactic and then select the impact on plan report rom thelet-hand column o the screen.



18


19/22

Impact on Plan.

The impact report (Figure 18) reveals that, i not implemented, the recruit locally tactic will aect the social awarenessstrategy, which in turn will aect the operating excellence objective. In this way, the Inor application warns the organisation

o the impact o programs that look likely to ail.

Figure 18. Impact on plan report.

Plan by Category.

Inor PM Strategic Management is Balance Scorecard Collaborative Certifed. In the fnal built-in report (Figure 19), the plan

by category report, the viewer has chosen to look at tactics grouped into the perspectives defned by the BalancedScorecard methodology. Inors sotware accommodates other planning methodologies as well.

Figure 19. The plan by category report can be used to group tactics by Balanced Scorecard perspectives.



19


20/22

Why linking strategy to the budget makes sense

This paper ocuses on just one aspect o Inor PMs unctionalitystrategy management. When it is used in conjunction withInors integrated fnancial planning, budgeting, orecasting, fnancial consolidation, reporting, and analysis unctionality, theresult is a comprehensive, closed-loop perormance management system. This system can be accessed through anenterprise-wide, web based management portal or the ongoing monitoring, measurement, and management o theorganisations perormance.

There is evidence to support the contention that organisations that ocus on perormance management outperorm those

who dont. In a survey o 437 publicly traded organisations, those that had structured perormance management systems(205) produced better results than those who didnt (Figure 20).5 Industry analyst group Gartner predicts that enterprisesthat eectively deploy perormance management solutions will outperorm their industry peers6 and that by 2006, 50percent o Global 1000 enterprises will implement all or part o a perormance management solution. 7

Figure 20. Financial performance of firms with and without performance management systems.



20

Three-Year Growth RatesFirms with

Performance Management

Firms without

Performance Management

Total shareholder return 7.9% 0.0%

Return on equity 10.2% 4.4%

Return on assets 8.0% 4.5%

Cash ow ROI 6.6% 4.7%

real growth in sales 2.1% 1.1%

Real growth in employees 0.0% 1.1%

Sales per employee $169.900 $126,100

Income per employee $5,700 $1,900

5 Andr A. de Waal, Quest or Balance (New York: John Wiley & Sons, 2002), pp. 24-25.

6 Lee Geishecker and Nigel Rayner, Corporate Perormance Management: BI Collides With ERP, Research Note SPA-14-9282, Gartner, Inc.,December 17, 2001, p. 1 .

7 Craig Healey, Gartner Symposium: Riding the CPM Surge, MIS, November 11, 2003 (http://www.misweb.com/newsarticle.asp?doc_id=22613&rgid=2).

Quest or Balance, Andr A. de Waal; Copyright 2002 by John Wiley & Sons, Inc.


21/22

Why Infor PM?

In their independent evaluation, Ventana Research, a leading perormance management research and advisory services frm,rated Inors perormance management solution frst in all three categories it evaluated. Results were published in their 2007Perormance Management Scorecard.8

About Infor

Inor delivers business-specifc sotware to enterprising organisations. With experience built in, Inors solutions enablebusinesses o all sizes to be more enterprising and adapt to the rapid changes o a global marketplace. With more than70,000 customers, Inor is changing what businesses expect rom an enterprise sotware provider. For additionalinormation, visitwww.inor.com.



21

8 Ventana Research, 2007 Perormance Management Scorecard, 2007.


22/22

Infor Corporate Headquarters13560 Morris Road

Suite 4100Alpharetta, Georgia 30004

USA

Phone: +1(800) 260 2640

www.inor.com

Copyright 2007 Inor Global Solutions Technol ogy GmbH and/or its a liates and subsidiari es. All rights reserved. The word and designmarks set orth herei n are trademarks and/or registe red trademarks o Inor Globa l Solutions Technology GmbH and/or its a liates and sub-

sidiaries. All rights reserved. All other trademarks listed herein are the property o their respective owners. The content and matters describedherein are subject to change at any time without notice.

Disclaimer

This document reects the direction Inor may take with regard to the specifc product(s) described in thisdocument, all o which is subject to change by Inor in its sole discretion, with or without notice to you. Thisdocument is not a commitment to you in any way and you should not rely on this document or any o itscontent in making any decision. Inor is not committing to develop or deliver any specifed enhancement,upgrade, product or unctionality, even i such is described in this document.

EMEA-UK-GB-PM-1007-PM-NUMBERS-WIWP13

6 steps for linking Corporate Strategy to the Buget

Documents

Transcript of 6 steps for linking Corporate Strategy to the Buget