Opening Presentation

COPYRIGHT©2008 PROCYGNUS CONSULTING
PERFORMANCE
CORPORATE
ENHANCING

PERFORMANCE MANAGEMENT DEFINED
Corporate Performance Management (CPM) is the area involved
with monitoring and managing an organization’s performance
as reflected by key performance indicators (KPIs) such as
revenue, return on investment, overhead, and operational costs.
It is about the ability to consistently deliver business outcomes.

DELIVERING BUSINESS OUTCOMES
This ability is effected by the organizations strategy, structure,
culture, processes and systems.

STRATEGY
A specific pattern of decisions and actions that managers take to
use core competencies to achieve a competitive advantage.
Strategic management is that set of managerial decisions and
actions that determines the long-run performance of a
corporation.

EVOLUTION OF STRATEGIC MANAGEMENT

Phase 4
Process Capability

Strategic Management

Phase 3
Externally oriented planning

Phase 2
Forecast-based planning

Phase 1
Basic Financial Planning

Time

STRATEGIC MANAGEMENT PROCESS

Environmental Strategy Strategy Evaluation and
Scanning Formulation Implementation Control

Feedback/Learning Loop

SCOPE OF PERFORMANCE MANAGEMENT

Performance Management

Environmental Strategy Strategy Evaluation and
Scanning Formulation Implementation Control

Feedback/Learning Loop

STRUCTURE
Formal system of task-authority relationships that control how
people coordinate their actions and use resources to achieve
organizational goals.

STRUCTURAL CONSIDERATIONS
Informal Formal
Informal Formal

Long Term Strategic Joint
Networks
Strategic Contracts Ownership Ventures
Reputation Co-optation M&A
Alliance

Types of strategic alliances

Symbiotic Interdependencies Strategy

Environmental Bounded
Informal Formal
Uncertainty Rationality

Third Party
Collusion and Strategic Opportunism Small Numbers
Linkage M&A
Cartels Alliance
Mechanisms

Risk Specific Assets

Competitive Interdependencies Strategy
Transaction Cost Analysis

Differentiation Integration

Centralization Decentralization

Mutual
Standardization
Adjustment

Mechanistic Organic

Flat and Tall Organizations
Organizational Design Challenges

CULTURE
It is the set of shared values and norms that control
organizational members interaction with each other and with
suppliers, customers, and other people outside the organization.

CULTURE CONSIDERATIONS

Organizational Values Socialization

Social Responsibility

Role Orientation
Terminal Values Instrumental Values

Stories
Ceremonies
Language
Norms, Rules,
SOPs

Socialization and Social Responsibility Processes
Organizational Values

Property Rights
System

Characteristics of Organizational Organizational
People Culture Structure

Organizational
Ethics

Culture Sources Analysis

PROCESS
A collection of interrelated tasks, which accomplish a particular
goal and categorized as management, operational or supporting
processes. Process management is a holistic management
approach that promotes effectiveness and efficiency while
aligning an organization to the wants and needs of clients.

GREINER’S MODEL OF GROWTH
5 Crisis of ?
Stage 1 Stage 2 Stage 3 Stage 4 Stage 5
4 Crisis of
Large
Red tape

3 Crisis of
5 Growth through
Size of Organization

control
collaboration

2 Crisis of
4 Growth through
autonomy
coordination

1 Crisis of
3 Growth through
leadership
delegation

2 Growth through
direction

1 Growth through
Small
creativity

Young Mature
Age of Organization

HOLISTIC APPROACH
Thus approaches to enhance business performance need holistic
frameworks to catalyze organizational change and cover many
facets of the organization. This entails a preliminary analysis of
how the current structure and culture adapt to environmental
change as a benchmark stage from which progress is measured.

SYSTEMS
Brings information from multiple sources within the
organization to the point of decision, enabling proactive
measures to be taken to correct performance trends.

FIVE PRINCIPLES FOR EXECUTION
Translate strategy into operational terms
Align the organization to the strategy

Make strategy everyone’s everyday job
Make strategy a continual process
Mobilize change through executive leadership

SAMPLE: HOW DO WE GO ABOUT IT?
Enhancing business performance management requires a
process that starts with an audit of current strategy to
understand current perspective and then derives the cause-
effect relationship through which the organization delivers
shareholder value.

PERFORMANCE MANAGEMENT ROADMAP

Systemization

Rollout

Alignment

Sensitization

Design

Strategic Audit

Kick-off

CAUSE AND EFFECT

Stage 1: Develop

the cause effect
relationship map
that delivers
shareholder value.
This should be
within a
functional process
area and
CAUSE-EFFECT RELATIONSHIPS

developed around
a strategic theme.

ANAGEMENT
EFFECT

Stage 2: Analyze

and develop the
objectives for each
facet of cause and
ROCE
effect.

Customer
Loyalty

ANAGEMENT
On-time
Delivery OBJECTIVES

Process
Process
Cycle Time
Quality

Employee
Skills

Stage 3: Select the

measure that best
reflects the
Improve
Profitability
objective to be
ROCE
achieved.
Grow
Revenue

Customer
Loyalty
Attract and
retain

ANAGEMENT
Lower prices
On-time
Delivery

MEASUREMENT
Improve
turnaround
Process
Process
Cycle Time
Quality

Develop
skills
Employee
Skills

Develop
systems

Stage 4: Select

target or
performance
Improve Market Value
Profitability
threshold for each
ROCE
measure.
Grow Per seat revenue
Revenue Costs

Customer
Loyalty
Attract and # repeat customers
retain

ANAGEMENT
Lower prices # customers
On-time
Delivery OBJECTIVES

TARGETS
Improve On ground time
turnaround On time departure
Process
Process
Cycle Time
Quality

Develop Strategic Job
skills Readiness
Employee
Skills

Develop Systems availability
systems

Stage 5: Develop

the initiatives
needed to enhance
Improve Market Value 30% CAGR
Profitability
capability required
ROCE
to deliver targets.
Grow Per seat revenue 30% CAGR
Revenue Costs 5% CAGR

Customer
Loyalty
Attract and # repeat customers 70%
retain

ANAGEMENT
Lower prices # customers +12% pa
On-time
Delivery

INITIATIVES
Improve On ground time 30 min
turnaround On time departure 90%
Process
Process
Cycle Time
Quality

Develop Strategic Job Year 1: 70%
skills Readiness Year 2: 90%
Employee
Year 3: 100%
Skills

100%
systems

Stage 6: Assign a

budget amount to
each initiative and
Profitability
sum to obtain
ROCE
annual budget.

Customer
Loyalty
Implement
Attract and # repeat customers 70% CRM
retain

Quality Mgt

ANAGEMENT
Customer
On-time
Loyalty Pgm
Delivery

BUDGETS
Improve On ground time 30 min Cycle time
turnaround On time departure 90% optimization
Process
Process
Cycle Time
Quality

Crew
Develop Strategic Job Year 1: 70% Training
Employee
Year 3: 100% Scheduling
Skills

100% Comm. Pgm
systems

………..

Fully developed

sample deliverable
for a low cost
Profitability
airline.
ROCE

Customer
Loyalty
Implement $xxx.xx
Attract and # repeat customers 70% CRM
retain

Quality Mgt $xxx.xx

ANAGEMENT
Customer
On-time
Loyalty Pgm $xxx.xx
Delivery

Improve On ground time 30 min Cycle time $xxx.xx
turnaround On time departure 90% optimization
Process
Process
Cycle Time
Quality

Crew
Develop Strategic Job Year 1: 70% Training $xxx.xx
Employee
Year 3: 100% Scheduling $xxx.xx
Skills

100% Comm. Pgm $xxx.xx
systems

$xxx.xx

ORGANIZATION DEVELOPMENT TRACKS
Strategy
Strategic Management Track
Performance Management Track

Structure
Organization Design Track
Organization Change Leader Track
Culture
Human Capital Management Track
Effective Leadership Track
Process
BPM Track
TQM Track
Six-Sigma Track
Systems
IT/Systems Strategy Planning Track
CPM/BI Infrastructure Planning Track
Systems Integration Strategy Track

Organization
All tracks are

Intermediate

DEVELOPMENT LEVELS
offered at four

Individual
Advanced
levels based on
function and

Expert

Offsite
Onsite
Group
Basic
experience level.
As a general
TRACK
guideline, Basic
and Intermediate
Strategic
levels could be
Management ◙R
◙ ◙ ◙ ◙ ◙ ◙ ◙ ◙
offered to middle
Track
management,
advanced to senior
Performance
management and
Management ◙R
◙ ◙ ◙ ◙ ◙ ◙ ◙ ◙

expert to top
Track
management
Organization executives.
Custom tracks are
Design ◙R
◙ ◙ ◙ ◙ ◙ NA NA ◙
created after
Track
completion of a
Change strategic review,
Leader Track ◙R
◙ ◙ ◙ ◙ ◙ NA NA ◙ executive
interviews and
training needs
Leadership analysis.
Track ◙R
◙ ◙ ◙ ◙ ◙ NA NA ◙

Personal
- Recommended
R
Effectiveness ◙R
◙ ◙ ◙ ◙ ◙ NA NA ◙
Track
Etiquette and
Soft-skills ◙R
◙ ◙ ◙ ◙ ◙ NA NA ◙
Track
Custom
Tracks NA NA NA NA ◙ ◙ ◙ ◙ ◙

PROFESSIONAL SERVICES CONSULTING
Business Performance Management
Strategy and Organization

Strategic Human Capital Management
Performance Orientation in M&A
Strategic Systems Review and Planning
Strategic Change Management

PROFESSIONAL SERVICES MEDIA
Corporate Presentations
Corporate Communications

Training &Professional Development
Sales & Marketing Video Collateral
Induction/Acculturation/Expatriation Programs
Corporate Social Responsibility
Advertising and Public Relations

ENGAGEMENT CYCLE - CONSULTING
Preliminary Situation
Appraisal

Opportunity Report

Draft Strategy

Positioning

Contract

Execution

Review and Closure

ENGAGEMENT CYCLE – TRAINING
Preliminary Situation
Appraisal

Training Needs Analysis

Opportunity Report

Development Roadmap

Contract

Execution

Review

QUESTIONS AND NEXT STEPS?
Ranjiv Kurup
ranjiv.kurup@procygnus.com
+91.981.840.1411

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