Performance—Long-term Assets Management
Are we managing long-term assets effectively to increase future revenue and expense management capabilities?
Decisions in this area are Executive Management’s opportunity to influence the future direction and successful performance management of the business. This is where the right investment choice can fundamentally redefine both the revenue opportunities and cost efficiencies of an organization.
Executive Management looks at these four areas for better Long-term Assets Management:
Use integrated decision areas to get the Long-term Assets Management information you need for these four performance measures.
Long-term Assets Management







ROA (%)


Strategic Investment ROI (%)
These decision areas, drawn from across departments, bring strategic investment ROI information to the fore.
- By making strategic investments a dedicated sweet spot, Executive Management can monitor investment performance and rationale for a decision.
- Acquisitions fail in financial terms due to overpaying for the target or poor execution when consolidating the business.
- With Executive Management well informed by past acquisitions of the key factors that influence success or failure, you reduce the risks for the future.
Select any decision area to see the performance information it offers to back up your management of strategic investments.
CapEx and Strategic Investments
Goals
- Investment ($)
- Net Present Value ($)
- ROI (%)
Balance Sheet
Goals
- Capital Employed ($/%)
- Debt: Equity Ratio (%)
- ROCE (%)
Market Opportunities
Goals
- Company Share (%)
- Market Growth Rate (%)
- Market Revenue ($)
Competitive Positioning
Goals
- Competitor Growth (%)
- Competitor Price Change (%)
- Competitor Share (%)
Product Lifecycle Management
Goals
- New Product Growth (%)
- New Product Share ($)
- Relative New Product Share ($)
Staff Productivity Index
Decision areas from across various departments bring information about staff productivity to your attention.
- A basic assessment reveals headcount and sales per employee by department, but there can be many added levels of sophistication in this tracking.
- If this indicator increases, implying improved staff productivity; Executive Management should look at how to sustain it.
- You may have seen an associated increase in training and development expenditures due to the new project, but the result directly improves the staff productivity index. With these figures, Executive Management can push for a review of plans and have other functions record the impact in operational plan variance.
Select any decision area to better understand the performance information that backs up your management of staff productivity.
Organization & Staffing
Goals
- Average Tenure (#)
- Employee Turnover (%)
- Headcount (#)
Sales Plan Variance
Goals
- Sales Order ($)
- Sales Plan ($/%)
Business Value Road Map
Goals
- Business Priority Score
- Business Value ($)
- Information Quality Index
- IT Capability Index
- IT Costs ($)
Compensation
Goals
- Compensation Increase ($)
- Avg. Compensation Increase (%)
- Compensation Cost ($)
Operational Plan Variance
Goals
- Operating Cost Variance ($/%)
- Overhead Cost Variance ($/%)
- Prod. Cost/Sales Ratio (%)
Training & Development
Goals
- Skills Rating Gap (%)
- Training & Development Cost ($)
- Training & Development Cost/Payroll (%)
IT ROA (%)
These decision areas from across departments provide return on asset information for Information Technology.
- Sudden technology shifts can upend the business model, so Executive Management must know where and how IT assets are driving value across different business units, lines of business, and functions.
- Comparing the upward or downward trend in IT ROA with current financial and operational results lets you see potential weaknesses in IT strategy.
- Likewise, comparisons with staff productivity and strategic investment percentages highlight the level of alignment with long-term business goals.
See how these decision areas deliver performance information to help you manage IT's return on assets.
Business Value Road Map
Goals
- Business Priority Score
- Business Value ($)
- Information Quality Index
- IT Capability Index
- IT Costs ($)
IT Portfolio Management
Goals
- IT Capability Index
- IT Costs ($)
- IT Efficiency Index
Project / SDLC Management
Goals
- IT Project Completion (%)
- IT Project Lead Time (#)
- IT Project ROI (%)
IT Vendor Management
Goals
- IT Contract Cost ($)
- IT Project Completion (%)
- IT Project Lead Time (#)
- IT Vendor On-Time (%)
- SLA Performance (%)
Sales Plan Variance
Goals
- Sales Order ($)
- Sales Plan ($/%)
Employee Retention (%)
Decision areas from across departments let you track employee retention as an executive manager.
- Retaining employees saves money on recruitment and start-up costs; keeping the right employees builds one of your most important assets.
- The talent and succession review decision area provides additional information for Executive Management, making it aware that new people and talent are necessary to improve the capability of the business.
- Designing a blend of internal career advancement and strategic recruiting of new talent is an Executive Management priority.
Get a better handle on the measures and goals that help you manage employee retention.
Talent & Succession
Goals
- Employee Satisfaction Index
- Succession Gaps (#)
- Talent Gaps (#)
Organization & Staffing
Goals
- Average Tenure (#)
- Employee Turnover (%)
- Headcount (#)
Benefits
Goals
- Benefit Cost Increase (%)
- Benefit Costs ($)
- Benefit Costs/Payroll (%)
Compensation
Goals
- Compensation Increase ($)
- Avg. Compensation Increase (%)
- Compensation Cost
Training & Development
Goals
- Skills Rating Gap (%)
- Training & Development Cost ($)
- Training & Development Cost/Payroll (%)
Income Statement
Goals
- Actual vs. Plan Variance ($/%)
- Net Sales ($)
- Operating Profit / EBIT ($/%)
| Performance Management for Executive Management | Page: 1 2 3 4 5 6 7 |
Additional Resources:
The Performance Manager Book
Book
This book, Proven Strategies for Turning Information into Higher Business Performance uncovers 42 information sweet spots. Understand these areas, and you can drive performance excellence.
Cognos Performance Manager
Online Demo
See how plans, financial reports, and scorecards can help you manage performance across all data sources.
Performance Manager Book Abstract
Abstract
The Performance Manager, Proven Strategies for Turning Information into Higher Business Performance Book.
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