Perpetual Transformation | Page 17

Assure full-value realization | Introduction of typical issues

Most companies stay behind their targets and face typical issues when launching , driving and sustaining their transformation efforts – performance management provides transparency on the leakages early on and allows managers to act
CHALLENGE
TYPICAL ISSUES ( NOT EXHAUSTIVE )
80 % of all transformation programs do not achieve their financial and operational targets
• Incomplete baseline
• Missing granularity
• Inconsistent data
• Overlaps of baseline
• Lack of granularity
• Overconfidence
• P & L value leakage
• Offsetting through contradictory measures
• Lack of transparency
Transformation
GAP TO TARGET
Business
• Revenue decrease
• FX effects
• Price erosion
• Insufficient focus and empowerment
• Higher implementation costs
• Barriers to execution
Target
Actual result
Baseline
Gap-to target
Target
Adverse
Planning
Execution
Value
Effects
Leakage
Forecast / Actuals
Source : goetzpartners
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