“Beyond Budgeting” - Juergen Daum

Elements of the New Enterprise Management System*
Extended Performance
Measurement
for “Multi-Level Control”
Strategy
Implementation
and Overall
Performance
Product
Development
and Marketing
Operational
Business
Markets /
Customers
Balanced Scorecard
Financial
Results
Strategic
Projects
Processes /
Resources
Product Innovation Cockpit
Market
Research
Development
of New
Products
and Services
Operational Cockpits
Fulfillment /
SCM Cockpit
Creation of a balanced and highly
focussed view of all strategic and
operational success factors
Marketing,
Business
Development
CRM
Cockpit
Resource
Resource Management Cockpits
Management HR IT Alliances Finances
Goal Setting
Performance
Measurement
Continual Management
Processes for Dynamic
Adaptability
Creation of Value (of Potential for the Future)
and of Long-Term Competitive Advantages
Strategy
Adjustment
Strategy Management
Process
Forecast
Performance Management
Process
Process
Adjustment
Strategic
Analysis
Define
Adjustment
Method
Achievement of Short-Term Performance
Targets and Realization of Generated Values
Integrated, rolling management processes
enable strategies to be linked to the business
processes and daily operations
*see: Jürgen Daum: “Intangible Assets and Value Creation”, Chichester (Wiley) 2002
© SAP AG 2002, SAP HR & Financial Kongress 2002, D7 31
Rolling Forecasts and the Continuous and Systematic
Analysis of New, Emerging Opportunities and Risks
160
140
120
100
80
60
40
Potential
Negative Effects
(New Risks)
Exchange
Rates
Development
Problem
Delays
Project
Uncollectible
receivables
Potential
Positive Effects
(New Opportunities)
Drop in
Price of
Raw
Materials
Income
from
Security
Transactions
Customer
Project
Completed
Ahead of
Schedule
20
0
Previous
Forecast / Budget
Warranty
Sale of
Product A
Surpasses
Forecast
New
Forecast
Source: Jürgen Daum: “Intangible Assets and Value Creation”, Chichester (Wiley) 2002
© SAP AG 2002, SAP HR & Financial Kongress 2002, D7 32
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