Integrated Planning, Performance Management

Integrated Planning and Performance Management

Several studies on group controlling in the manufacturing industry show that one third use to control their business by relying upon a maximum of 2 to 5 key figures or KPI. Data on turnover and sales rank first, followed by EBIT (Earnings before Interest and Taxes), EBITDA (Earnings before Interest, Tax, Depreciation and Amortization) and productivity results. These figures are often based on local results, despite the complexity of the group supply chain.

Looking at products, which price is influenced by the efficiency of a global value chain, a comprehensive view on costs is indispensable. However, if the supporting IT and reporting systems are not able to provide these figures, trying to build an artificial analysis of costs may prove inefficient and at times misleading.

Use of Key Performance Indicators (KPI)

n= 64 companies, multiple mentions possible.

from: Explorative market study– Corporate Controlling,
competence center innovation, and market-oriented business management,
Hochschule Ludwigshafen, September 2007