“Beyond Budgeting” - Juergen Daum

Challenges in the Field of
Performance Management
© SAP AG 2002, SAP HR & Financial Kongress 2002, D7 7
Typical Example of Incorrect Business Management
Forecast at a Scandinavian Electronics Group
Production
Quantity
700
600
June, Year 1*
June, Year 2*
Dec, Year 5*
500
Product based on
old technology
400
June, Year 5*
300
June, Year 3*
June, Year 3*
June, Year 4*
June, Year 4*
200
100
Product based on
new technology
June, Year 5*
Actual
Forecast
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
* Date when the forecast was drawn up
© SAP AG 2002, SAP HR & Financial Kongress 2002, D7 8
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