Performance Reporting
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> 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.
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Transcript of Performance Reporting
>Performance ReportingA BearingPoint AcceleratorIn 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.
ContentsMarket Drivers
Our Approach
Client Benefits
References
Contact
CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< >
Performance Reporting | A BearingPoint Accelerator
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 e�cient 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
The requirement of higher data quality and transparency, combined with fast reaction times, in an increasingly complex corporate environment lead to more significant data analysis and reporting
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 e�ect 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 DriversA meaningful performance reporting process is the link between the existing parallel worlds of management and operational reporting. In the long term it is the database for reduced financial reporting and the framework for the detailing of indicators on operational level.
Reporting to shareholders, supervisory board
ManagementReporting
Reporting ofsegments orbusinessunits
Performance Reporting
CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< >
Performance Reporting | A BearingPoint Accelerator
Our ApproachPerformance reporting – connecting financial and operational information to support e�cient and forward-looking performance and business developmentFacing 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
E�ciency• 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 o�ered information
Value-adding analysis and
decision support35 %
E�ciency gains
Status Quo Target>
Standard processes
65 %
Value adding analysis &
decision support Strategy
development60%
Standard processes
40 %
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
di�erent 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
Value based and steering oriented reporting• 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
Performance reporting – combining management reporting and operational reporting within one consistent and transparent basis of information and steering
Increasing requirements concerning data analysis, value-based management and changing business environments
ReferencesLocal 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
ApproachGradual 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.
ContactCarolin KnocheSenior ManagerBearingPoint [email protected]
Stefani RahmelPartnerBearingPoint [email protected]
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
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