Companies With Best-in-class Corporate Performance Management Strongly Outperform Competitors, Says AberdeenGroup Report.BOSTON -- Enterprises that deploy best-in-class corporate performance management programs can outperform Outperform An analyst recommendation meaning a stock is expected to do slightly better than the market return. Notes: Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy. their competitors by an average of 5 percentage points gain in return on assets Return on assets (ROA) Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets). and a 4.9 percentage points gain in percent gross margin. "The Corporate Performance Management Benchmark Report" found that best-in-class companies take advantage of the volatility, fragmentation (1) Storing data in non-contiguous areas on disk. As files are updated, new data are stored in available free space, which may not be contiguous. Fragmented files cause extra head movement, slowing disk accesses. A defragger program is used to rewrite and reorder all the files. , and competition currently found in the marketplace to adopt proactive, profit-centric strategies for corporate performance management (CPM (1) (Critical Path Method) A project management planning and control technique implemented on computers. The critical path is the series of activities and tasks in the project that have no built-in slack time. ), and consistently outperform their competitors. "More than simply reporting historical results, best performing companies drive performance management processes and systems to improve future decisions across the value chain," said Stan STAN Stanchion STAN Stärke- und Ausrüstungsnachweis (German) Stan Standard Man (human patient simulator) STAN SEMCIP Technical Assistance Network STAN System Trace Audit Number STAN Star Trek Area Network Elbaum, Aberdeen's senior vice president of research and author of the report. "With a strong emphasis on their own and their competitor's new product introductions, these best performers strive to decisively win the battle for upcoming market dominant product and services." Elbaum's recommendations for improving corporate performance management effectiveness In management, the ultimate measure of management's performance is the metric of management effectiveness which includes:
--Analyze performance from the viewpoint of its profit impact across the value chain ,not by functional silo --Develop the ability to identify the root cause of performance variances through better business data analysis --Institute a continuous learning environment with a closed loop decision process to inject in·ject v. 1. To introduce a substance, such as a drug or vaccine, into a body part. 2. To treat by means of injection. findings into the company's future decision making process --Support end-user access to decision data and 'what if' simulation tools in an 'on demand' environment The "Corporate Performance Management Benchmark Report" presents a set of competitive frameworks that enable the reader to benchmark his own company against best-in-class CPM prioritized strategies, capabilities, technologies and performance. Recommendations are included to enable enterprises at different stages of maturity to migrate towards a more effective CPM program and improve their competitive position and performance. To obtain a copy of the report, please follow this link: http://www.aberdeen.com/summary/report/benchmark/PerfMgmt_%20093004b. asp (Due to its length, this URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.) This report, as well as Aberdeen's entire research library, is available to members of AberdeenAccess. For more information visit www.aberdeen.com, or call 617-854-5250. About AberdeenGroup Founded in 1988, AberdeenGroup Inc. is the trusted advisor to the global business executive for value chain strategies and business advice. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion