Cost and performance management
Increasing global competition, an intensifying regulatory environment and growing cost pressures mean that businesses facing more fierce challenges than ever. The successful organisations will be the ones that create a strong strategic focus to drive performance and align resources organisation-wide to facilitate strategic execution.
Common issues
- You are concerned that your strategic objectives do not clearly express the desired future state of your organisation.
- You don’t know whether your strategic objectives are being achieved.
- There is no link between your strategic planning and budgeting and forecasting.
- You don’t currently link organisational objectives to individual objectives and rewards.
- You wish to establish a culture of high performance.
- Your operations may not fully match your current business strategy.
- You don’t have the infrastructure to provide the right information at the right time to your key decision makers.
- You want to have full and detailed understanding of the costs associated with your current processes.
- You wish to allocate the majority of your costs directly to products/customers.
- You have increasing indirect costs and issues with appropriate allocation of costs.
How we can help
Cost and performance management is the key to realising your strategy. We will work with you to translate your strategy into a meaningful framework of metrics (Key Performance Indicators, KPIs) to effectively manage and measure the achievement of your strategy. This will enable you to have the right information at the right time so you can measure and track your progress. You will be able to analyse past performance, to identify patterns, trends and dependencies, to report on performance and to perform predictive modelling.
Based on our experience with various clients, we have developed an integrated Cost & Performance Management Framework as shown below:
This framework is divided into several areas to help you solve the issues currently facing your business. Our experienced team provides the following key services:
We will help you to define a suite of metrics and reporting to ensure your key decision makers have the right information at the right time. We can support you from the development of your strategy through to definition of measurable checkpoints and measures along the way. We will also help you to set up a reporting infrastructure to improve access to information. For large organisations, this usually involves some sort of enabling IT, such a Business Intelligence (BI) tool, and linking your existing systems to feed through data automatically. We have experience of working with the key BI tools, and can help you to compare and come to a decision about the right tool for your business.
Where organisations have activities in different locations or countries, we help to consolidate data and reporting into a single place. This ensures that leaders and stakeholders (e.g. regulators, banks or shareholders) have reliable, consistent, holistic data on company performance. This may include consolidation of your general ledger, profit & loss statements and balance sheets, all of which are essential to management and stakeholders. We can assist you to better understand regulatory reporting requirements and how best to respond. We provide our clients with an understanding of current and best practices in narrative regulatory reporting. In addition , we challenge management to develop an integrated reporting strategy that meets the needs of both the key decision-makers within the firm and principal stakeholders.
We help organisations to cascade and integrate their corporate strategy to all levels in the organisation to ensure that all staff are aligned and working towards the same common goals. This is one of fundamental steps in executing and achieving business strategy. We assist clients to establish a structured, integrated planning processes which links to the annual budgeting and rolling forecasting process. This helps organisations to manage finances more effectively. Furthermore, we help clients to integrate planning with risk management.
As bottom line costs are on the up for companies in Vietnam, focus and capability to control costs is becoming increasingly important. Through targeted training and new processes, we help organisations to create more focus and attention on cost and profit management among leaders. This work helps to improve weaknesses in the way costs are managed to drive towards a culture of continuous improvement. This will result in better clarity on cost drivers, operating and discretionary cost savings, financial discipline, cost control and reduction of waste.
Your benefits
- Better information available to leaders at the right time
- Improved reporting on achievement of business strategy
- More effective planning, budgeting and forecasting
- Better cost and profitability management (e.g. Cost Allocation, Activity Based Costing, etc.)
- More clearly defined Balanced Scorecards and dashboards and strategic, operational and individual KPIs
- More efficient, integrated performance and risk management
- Improvements in data quality
- Increased resilience & compliance
