This course provides team leaders and managers with practical processes to align organisational strategies and manage key performance indicators (KPIs).
Description
Managing organisational performance calls for a wider range of skills for finance professionals. This course provides insight into performance measurement as the starting point for finance professionals needing to synthesise complex data sets from different sources, both financial and non-financial, and analyse that data.
This course is designed for finance professionals who use persuasion and communication skills, supported by evidence, to take actions or make recommendations for change with the purpose of improving future performance.
Part 1. Introduces the links between strategy and performance measures and how a well-designed set of key performance indicators can contribute to improved organisational performance. We commence with an introduction to the different kinds of performance measures, the use of strategy maps to understand cause-effect relationships, and the characteristics of establishing good measures and targets.
Part 2. Shows how those targets and incentives can lead to a better alignment of performance with the organisation’s strategy. However, finance professionals need to recognise the ‘games people play’ when faced with targets and incentives which can lead to unintended and dysfunctional consequences.
Part 3. Focuses on the corporate governance framework in terms of the relationship between boards, investors and other stakeholders. For investors, boards have an important role in balancing the short-term/long-term performance trade-off. A broader stakeholder approach by the board emphasises the role of KPIs in maintaining an appropriate balance between sustainable economic, environmental, and social performance.
Key topics include:
Part 1. Critical success factors and key performance indicators
- Measures and KPIs
- Key performance indicator and critical success factors
- Value creation
- Setting performance targets
Part 2. Aligning strategy and KPIs
- Lead and lag indicators
- The balanced scorecard
- Incentives and KPIs
- Behavioral and motivational changes
Part 3. Alignment
- Alignment
- Aligning Human Resources
- Aligning environmental resources
- Change management
Learning objectives
At the conclusion of the course, you should be able to:
- Identify critical success factors that align to an organisation’s strategy.
- Establish cause-effect relationships between activities throughout an organisation and with strategic outcomes.
- Design a dashboard that align KPIs with the strategy of the organisation.
- Prepare a change management report to implement the new dashboard.
Audience
This course is suitable for finance professionals responsible for managing organisational performance, who need persuasion and communication skills.