Performance Management is often represented by three independently governed functions in medium large enterprises. Financial management and control unit owns the planning and and budgeting function, information technology units owns operational reporting and monitoring and the human resources department owns the compensation and reward function – among others. As simplistic as this description may appear, the need for greater alignment between these systems cannot be overstated.
We have reason to believe that the classical budgeting and planning systems have overstayed their welcome and various attempts at improvement in workflow are proving to be difficult to implement and maintain. Our response to this problem is explained in Enterprise Target Setting.