Performance Management
We all know the best laid out plans will change over time. Unexpected changes to demand, emergent work due to equipment failure, regulatory changes, adjustments to budgets and resources can all affect the company's ability to execute on investment plans.
During any previous phase of the AIPM implementation, there is the ability to start tracking the performance of investments over time, including re-forecasting investments and portfolios of investments and comparing projected execution performance against actual performance. Performance Management is primarily focused on the current fiscal period and the next budget period. The financial, non-financial and residual risk results, variances, projected progress and trends are analyzed. The objective is to provide dynamic feedback and to create a continuous cycle of improvement and adjustments providing visibility to issues as soon as possible.
Control and tracking of changes to investment spend profiles is provided and variances between approved forecast and current forecast is analyzed. The input of actual financial results and budgets into C55 enables the analysis of:
- Variance from the actual and current forecast to budget and the approved forecast
- Milestone target, projection and actual achievement dates
Performance Management provides a rich array of information to facilitate the decision tradeoffs typically required during budget planning and management.
Reports include a Monthly Portfolio Forecast Report, a Portfolio Annual Forecasts Report, a Site investment Comparison Report and a Milestone Variance Report.
Benefits
Performance Management closes the loop to create a continuous process to improve decision making for investments, and to flag variances, determine trends and fine tune your approach to reach your objectives. The earlier you can identify problems or accelerators, the sooner you can take corrective action. This will contribute to:
- Focusing the organization on a continuous "Plan-Do-Check-Act" cycle of improvement
- Quick visibility into investment and portfolio performance, variances, risks and emerging trends. Allows for swift action to under or over execution of investments
- Reduction in time to adjust plans by facilitating higher quality decisions within a common strategic framework
- Ability to benchmark the performance of one organizational unit against others to drive continuous improvement and adoption of best practices
/