Strategic Performance Dialogue
As part of an overall analysis, which was the basis for the Group's new strategy, the Corporate Center reviewed its key processes and programs. As a result the company decided to introduce a revised Strategic Performance Dialogue between the Corporate Center and the Divisions to help introduce a high-performance culture at the Group.
One of the focuses of the approach is to link strategic and financial planning more closely. As Chief Financial Officer John Allan put it: "We need to connect those who create visions and dreams for the future development of the company with those who hold the purse strings, those who plan the funding." The second focus is to improve and tighten financial planning and review processes. The latter includes shorter planning cycles, top-down committed targets as well as systematic review processes.
The Strategic Performance Dialogue will be a continuous and consistent process with five key elements:
- Analysis and continuous refinement of strategic challenges and scenarios
- Alignment of actions and activities between Corporate Center and Divisions
- Financial targets per Division agreed by the Corporate Board
- Break-down of financial targets into detailed Divisional financial plans
- Institutionalized follow-up on agreed actions and developments
In line with the aim to become investment, provider and employer of choice, performance will be measured holistically along the four performance dimensions "financial", "customers", "processes", and "employees".
The Strategic Performance Dialogue will be driven and overseen jointly by the CEO and CFO departments.
