Performance Management: Getting Everybody On the Same Page

You Must Do This Now

The ability to see how each component of your supply chain functions at a detailed level enables you to make smarter, more efficient decisions, optimizing both your distributive functionality and flexibility. In today's globally distributed environment, companies have fluctuating demand and high product complexity. To run a responsive supply network, you must analyze operations in real time.

Quarterly snapshots of supply chain activities alone won't cut it anymore. With each passing day, the need for modern modeling and optimization processes becomes greater. If you don't have a detailed, real-time view of your supply chain, you will be unable to compete in today's marketplace. A limited view will also prevent you from aligning your supply chain strategy with your corporate goals. With the right supply chain performance management architecture, you will be able to manage an extended, globally dispersed, responsive supply network; use models to view the performance of your network; execute based on visibility gained by closing the loop; link strategy to execution; and systematically measure, monitor and optimize strategy and performance.

If this all appears obvious — just good business practice — you're right. Nevertheless, many companies do not align corporate, departmental and individual goals on a single, clear trajectory. So, what can performance management offer you? In a word: success.

Stephanie Buscemi is vice president of marketing for enterprise performance management and governance, risk and compliance; Denise Vu Broady is vice president of strategic business development; and Nenshad Bardoliwalla is the former chief technology officer for enterprise performance management and governance, risk and compliance; all at SAP AG, a supplier of enterprise solutions headquartered in Walldorf, Germany. They are also co-authors of Driven to Perform: Risk-Aware Performance Management from Strategy through Execution (Evolved Technologist, 2009). For more, visit www.driventoperform.net.