In the process of enterprise value creation, enterprise performance management is a bridge between enterprise strategy and implementation. It helps enterprises to make a correct strategy through the balanced scorecard (BSC) and other internationally used tools and methods, and gradually decomposes the enterprise strategy into key performance indicators of departments and individuals, implements the corresponding action plan, and effectively monitors it during the implementation process to help enterprises optimize their strategies appropriately.
This case shows how to go through the six processes of BPM cycle, such as setting goals, modeling and forecasting, planning and budgeting, monitoring, analysis, evaluation and reporting. Blankets? Nanxun? ぞぞぞぜぜぜぜぜぜぜぜぜぜぜぜぜぜぜぜぜ Does Lotus Capsule have the problem of stealing glaze? Through the suburbs? Hey? Can you hurt your mother and plug the hole? What's your problem? What is the enthalpy? What happened to the bank interest rate?
Blu-ray Company is in a leading position in the research and development and production of laser equipment in China, with 600 employees, including 300 production personnel, R&D and designers 100, and the rest are engineering, sales, marketing and management personnel. We mainly produce two kinds of photoelectric products: electronic digital calculator and laser. The company mainly sells products through its direct sales team and agents, and has three branches and 1 1 agents throughout the country.
strategic goals
With the development of economy, to maintain the advantages of Blu-ray in the industry, higher requirements are put forward: the market is changing rapidly, and the transparency of enterprises is required to be higher and higher; Intensified market competition requires enterprises to respond faster; The market demands higher and higher innovation ability of enterprises; Investors have higher requirements for the profits of enterprises.
Blu-ray Company purchased financial communication software two and a half years ago, which is mainly used for financial management. Under the new competition requirements, the original financial communication has obviously been unable to support the strategic development of Blu-ray. The specific performance is as follows: the number of customers is increasing, but the satisfaction is decreasing, which leads to an increase in customer churn rate; Low production efficiency and long cycle; The inventory capital takes up a large amount; Enterprises are slow to respond to market changes; Manual operation and information transmission are not timely and accurate; The management mode is outdated and does not meet the long-term development requirements of enterprises.
Faced with this situation, the CEO who took office in 2002 made it clear that "Blu-ray will be led to realize informatization". At the same time, he defined Blu-ray's strategic goal as: "Continuously introduce new technologies and products, create shareholder returns, and achieve a 50% increase in sales revenue this year."
research report
After determining this strategy, the CEO quickly set up an internal information committee and hired Kingdee Software, a domestic management software company, to write the Feasibility Investigation Report of Strategy Realization.
After Kingdee's representative settled in Blu-ray Company, he quickly conducted a comprehensive investigation and evaluation of the company's current situation according to the six key steps of BPM cycle:
Goal setting: According to the four dimensions of the Balanced Scorecard (BSC): finance, customers, internal processes, learning and growth, Blu-ray Company failed to systematically break down its strategic goals into specific key performance indicators and implement them to departments and individuals. In order to achieve the goal of 50% increase in sales revenue, Blu-ray Company must achieve the goal of 32% increase in gross profit margin, 65,438+05% increase in after-tax profit margin and 65,438+00% increase in net profit margin.
Modeling and forecasting: In this process, Kingdee found that the sales director of Blu-ray often complained that the sales forecast was inaccurate, while the production director would accuse Blu-ray of having too many temporary orders, which made it difficult for Blu-ray to predict the operating conditions and profit income in advance. In this case, Kingdee pointed out that the operating conditions and profit income of various business models can be predicted by modeling tools to measure the feasibility of strategic objectives.
Planning and budget: in Blu-ray, the production director only makes monthly plans and never adjusts or modifies them; CFO also reflects that the budget changes greatly and the feedback is difficult! Therefore, it is necessary to carry out comprehensive planning and budgeting according to the objectives of enterprises, departments and individuals, fully allocate various resources of enterprises and give full play to their value. And formulate corresponding action plans to ensure the operability of strategic objectives.
Monitoring: in Blu-ray, almost from top to bottom, it is unanimously reflected that there is no effective monitoring guarantee, and the CEO said that it is difficult to monitor in time; The sales director complained that it took several days to know the current sales situation; CIO points out that finance and business are not integrated. In this case, the differences between actual key performance indicators and planned key performance indicators can be compared in real time through advanced management monitoring tools, which is convenient for taking corresponding measures to ensure that the implementation of departments and individuals is consistent with the overall strategic objectives of the company.
Analysis and evaluation: because the above four steps can't be well realized in Blu-ray, it is difficult for CEO to get effective analysis data, so he doesn't know the realization of the goal; And CIO can't effectively evaluate departments and products. Therefore, it is necessary to provide perfect tools and methods to deeply analyze and evaluate the operating results of enterprises, analyze the reasons for the difference between reality and goals, and provide correct decision-making information for the adjustment of enterprise strategy.
Report: CEO can't get an effective and accurate report; CFO can only provide financial reports; Sales executives can't get financial data. In this link, according to the needs of different managers, it is necessary to provide rich reports to reflect the business situation of the enterprise in all directions.
To sum up, Kingdee concluded that the outdated management methods and information tools left by the former CEO have become a major obstacle for the company to achieve its strategic goals. The key factors of Blu-ray's strategic success are: improving the ability of data analysis and decision support; Expand sales channels and improve sales ability; Strengthen budget control; Improve production technology and increase production capacity; Reduce inventory and improve inventory turnover rate; Reduce costs and deliver on time; Improve the efficiency of internal communication; Develop new products and shorten the time to market.
How to significantly improve the above indicators in a short time? At present, the problem that Blu-ray urgently needs to solve is to make decision information run through the whole process of strategic enterprise management, such as enterprise strategy formulation, strategy implementation and strategy optimization. The consultant of Kingdee Company recommended the latest strategic enterprise management information solution to the CEO of Blu-ray Company, which takes enterprise performance management (BPM) as the core and can effectively connect the strategy and implementation of Blu-ray Company. Its contribution is that it can help Blu-ray Company to know the decision-making information in time and realize the whole process of strategy from formulation to implementation to enterprise value.