www.pwc.co.za

More competition. Increased regulation. Tighter margins. Savvier consumers. As you refine your business strategies to succeed in this tough market, how can you be confident that you are bringing your organisation with you, in the same direction and at the same pace? This is where we can help with our Enterprise Performance Management (EPM) advice.

What is Enterprise Performance Management?EPM puts information at the heart of decision making to help organisations achieve their goals. It’s based on our belief that information is what drives a business. It’s certainly not rocket science, but what is quite a science is gathering this information and making sense of it, not to mention applying it across an entire company.

So how do you do it?We start with your strategy, helping you convert it into tangible metrics. In other words, we identify the things you can measure to find out what’s really going on with your business. These metrics are then planned, measured and forecast into the future. They’re also used to set targets and objectives for teams and individuals.

Essentially, this is about turning the strategy into something meaningful that can filter down through all areas of your organisation. Whether it’s finance, production, sales or HR, we’ll help each department work in line with your strategy and with each other.

Are you fit to face the future?We also find that when a business is performing at its best, everyone in it is adding value. That’s why our approach includes focusing on your people as well as the numbers. We promote a management style that goes beyond focusing on figures and is as much about influencing attitudes and actions. And this requires top-down leadership. We’re very fond of this old Chinese proverb: ‘Tell me and I’ll forget; show me and I may remember; involve me and I’ll understand.’ For us, this really captures the essence of performance management done well. Involving the whole organisation in achieving business goals can produce real momentum.

‘Through this project we have massively simplified our reporting process. We now have clear accountability and ownership of the numbers, and the speed and robustness that we were seeking, with a single set of figures for Management and Financial accounts.’

FTSE50 Retail company

How do you know you need EPM?Whatever your industry, doing business is getting more and more complex. And the pace of change just keeps getting faster. In most industries, there’s also pressure for management to move beyond focusing on top-level financial information and to get to grips with detailed operational needs. If you’re in consumer business, for example, a big challenge now is making sure your sales forecasting, production and logistics planning are in line with your financial forecasting. Working with us provides an organisation with a rare opportunity to examine what’s getting in the way of achieving its goals.

Here are just a few of the questions to ask yourself to uncover whether you should take this opportunity:

• Do you have a clear picture of performance across your organisation?• Are you confident that all your teams are pulling in the same direction?• Do you trust your forecasting? Do you have a clear view of the road ahead?• Do you comply with all regulatory requirements?• How do you protect and get the most out of your organisation’s information?

We’re seeing a greater demand for higher value business information, with a return on investment. We realise there’s more to this than just implementing a software tool. Organisations want a clear business case for proceeding with any investment and that’s why we’re working with them.

‘Intelligence around our subscriber numbers used by operational and marketing managers is one set of information that we will now be able to enhance and share with the entire enterprise.’

FTSE100 Telecoms company

Who have we helped?We have worked with organisations spanning all industries. Our successes range from defining the vision of EPM through to integrated operational planning and EPM software selection projects.

One of our clients, a leading brewer, came to us with a lack of common data standards, fragmented systems and outdated reporting processes. They told us that as a result, the Group and Regional managers were battling to control the business. Together we standardised the management information and bring in new reporting, planning and consolidation processes. This gave more accurate and easy to use information, faster reporting and in turn greater confidence in achieving their goals.

Another great example of the value performance management can add to your organisation is our work at a major global retailer. While the business had grown

dramatically, its finance reporting systems had failed to keep pace. The result was an unhappy finance workforce, struggling to meet demands for reporting. We introduced a new reporting tool, which provided a single source for group management and statutory information. What’s more, it streamlined reporting across 500 legal entities and 30 finance teams, as well as significantly reducing the workload around month-end. The outcome was a delighted client, an improved finance function and a re-energised workforce with an improved work-life balance.

So why PwC?We’ve already mentioned our ‘involve me and I’ll understand’ philosophy, and how it captures the essence of performance management so perfectly. But it’s also at the heart of how we go about our work. We work with you side-by-side to achieve your goals, first by defining the metrics that are important to your business, and then by making sure they’re consistently planned, measured and linked to the way your people behave.

Our goals are quite simple. We believe all of our performance management engagements should become references. We want to be valued by our clients for our experience, and to be re-engaged by them because of the value we help create. And we believe engaging with PwC should be easy and enjoyable. This is how we judge our success: by our ability to help you achieve yours.

EPMA continuous process

generating real results.

1. Strategy to PlanStrategy to Plan is the process that prepares you for achieving your goals. This includes defining what will be the important measures against which you track risk and performance, and sharing them to engage the business. It also covers the long term plan for where you want to take your business and the shorter term allocation of resources to the activities that will help you get there.

Measure to Forecast is the process to check the ongoing health of the business and take a look at the path ahead. This is based on the actual performance of the business against the metrics defined in Strategy to Plan.

Recognise to Reward links your metrics into the performance management plans of individuals to make sure your organisation continues to work in the way you want it to.

2. Measure to Forecast

3. Recognise to Reward

r isk

pla

nning and managemen

tvalue

We help deliver a seamless cycle of performance management

Steve KillickDirectorNational Proposition Lead : Finance Transformation, Enterprise Performance Management and Revenue Growthsteve.killick@za.pwc.comC: +27 (82) 459 7813 T: +27 (11) 797 4213 F: +27 (11) 209 4213

Grant SearleAssociate DirectorConsumer and Industrial Products, Energy and Mining Proposition Lead: Finance Transformation, Enterprise Performance Management and Revenue Growthgrant.searle@za.pwc.comC: +27 (79) 519 3332 T: +27 (11) 797 5269 F: +27 (11) 209 5269

Charles WoodhatchAssociate DirectorSME : Enterprise Performance Managementcharles.woodhatche@za.pwc.comC: +27 (83) 291 9708 T: +27 (11) 797 5331F: +27 (11) 209 5331

www.pwc.co.za