UK plc companies must step up performance to meet OFR challenge, warns Cognos
predicts performance management revolution in wake of new regulations.

London - June 14, 2005 Companies that don't keep a close eye on business performance will struggle to meet upcoming regulations, according to Cognos.

All UK-listed companies, whose year-end commences on or after April 1, 2005, will be obliged to prepare a mandatory Operating and Finance Review (OFR). This calls for a business analysis based on financial and non-financial Key Performance Indicators (KPIs). False or even reckless statements will result in criminal prosecutions and large fines for directors.

For the first time, public companies will need to give a prediction of future performance as well as supply KPIs on the main risks to the business, environmental matters, employees and social and community issues.

"Under OFR, companies have to measure the development, performance and position of the organisation against defined Key Performance Indicators (KPIs)," said Graham Walter, VP UK, Middle East and South Africa of Cognos. "A combination of strategy development, objective setting and KPI measurement, which is central to Corporate Performance Management (CPM), is also key to OFR compliance."

In reaction to this Cognos has released a White Paper that outlines the implications of the OFR and gives guidelines on how firms can best comply with the regulations.

"While the task of complying with OFR may seem daunting, the questions being asked are not new," Walter continued. "The concept of CPM and the objectives of OFR are very closely aligned. Forward-thinking CEOs, who have already embedded performance management within the organisation, have been asking those same questions for years."

"The Accounting Standards Board has introduced these regulations to add depth to financial statements by explaining the objectives and strategies of the business, as well as the risks they will face," he said. "It will be much easer for senior management to put a strategy in place if they know that they can rely on existing applications and processes to meet the OFR challenge."

The White Paper can be obtained by calling 0800 056 5610.

About Cognos, an IBM Company
Cognos, an IBM company, is the world leader in business intelligence and performance management solutions.

It provides world-class enterprise planning and BI software and services to help companies plan, understand and manage financial and operational performance.
Cognos was acquired by IBM in January 2008.

For more information, visit http://www.ibm.com/software/data/ and http://www.cognos.com/uk/

For further information about Cognos, please contact:
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