“Beyond Budgeting” - Juergen Daum

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Personnel Management © SAP AG 2002, SAP HR & Financial Kongress 2002, D7 39 Creating the Right Environment to make People really productive • Empowerment motivates, but only if it can be lived out for real • A management style entailing a careful balance between coaching and setting challenges helps employees to realize their full potential • Hiring employees who can be trusted with responsibilities and who enjoy having them, and who are not trapped in the classical hierarchy mindset • Prioritize internal resources for filling management positions? © SAP AG 2002, SAP HR & Financial Kongress 2002, D7 40 20
Human Capital Development Program • Which competencies and skills do we need in future? • Do the employees lend their full support to the company’s goals? • Is team spirit sufficiently present? Human Capital Readiness Map Human Capital Category Aim Target Value Human Capital Development Program Strategic Competencies Management Alignment / Motivation • Reduce Strategic Talent Gap • Reduce Fluctuation • Manager Competence • Acceptance Among Employees • Employees Actively Support Company Goals • < 10% • < 5% • Rating based on Job Requirements • Rating in Peer Group • Employee Survey • Ratings by Other Stakeholders HR Function Recruiting Training & Development Leadership Development Communications / Change Management Measures Target Integration Energy / Team Spirit • Sharing Knowledge, Experts, etc. • Employee Survey • Manager Survey Knowledge Management © SAP AG 2002, SAP HR & Financial Kongress 2002, D7 41 Decentralization of Responsibility Calls for a Strong Company Charter Example: Supplier in Automobile Industry with Decentralized Structures Company Charter Employee Charter: • Fairness • Job Security • Competitive Salaries • Employee own a share in the company’s stock • Communication and Information • Personal Hotline Support Underlying Principles: • Values and Basic Rules (What We Do and Don’t Do) • Mission: What We Are About • Target Distribution Key for Company Profit Reinvestment and Taxes 55% Stakeholders 20% Management 6% R&D 7% Social Aims 2% Employees 10% Incentive System: • Employee Profit-Sharing (50% Cash / 50% Stocks) • Incentives Linked to Continual Improvement Process • Incentives for Middle Management based on Annual Target Agreements • Top Management: 3-Year Share in Company Stocks with Obligatory Period of Retention – Use of Resources: Employee Involvement in Assessment Process © SAP AG 2002, SAP HR & Financial Kongress 2002, D7 42 21
Page 1 and 2: Successful Enterprise Management th
Page 3 and 4: The New Perspective: Efficiency of
Page 5 and 6: Companies Compelled to Develop Exte
Page 7 and 8: Basic Principles of Traditional Bud
Page 9 and 10: The Underlying Philosophy of Beyond
Page 11 and 12: Agenda Motivation for a New Manage
Page 13 and 14: Case Study: Boots © SAP AG 2002, S
Page 15 and 16: Points to Consider When Implementin
Page 17 and 18: Dialog-Based Management Systems to
Page 19: Architecture of the Information Sup
Page 23: More Information about Beyond Budge

“Beyond Budgeting” - Juergen Daum

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