Best Practice Guide for agile corporate performance management

In recent years best practices have been established which – if implemented appropriately – improve the planning process:

  • Top-down planning: A top-down oriented approach with a pre-determined target setting shortens the process duration and minimizes the number of iterations.
  • Value driver trees: Value driver trees define a standardized calculation logic. They concentrate on management related subjects and place the focus on the essentials. By standardizing the understandings of general influence factors of your business model they help to promote more purposive and fact-oriented discussions.
  • Measures and scenarios: The consolidation of (financial) goals with measures improves the interlocking between strategy and operative planning as well as the liability of the budget. Additional flexibility is caused by thinking in scenarios and alternatives.
  • Simulations: Simulations allow for quick responses to changing conditions and therefore enable a quick and efficient derivation of plan scenarios. This leads to increasing agility of corporate management.