Page 159 - 100 Great Business Ideas: From Leading Companies Around the World (100 Great Ideas)

• Emphasize strategy-driven KPIs rather than simply measuring

performance against budget.

This ensured that people at every level and position had relevant
metrics—measures of their individual and team performance—
while giving the board the right information. The same data, slightly
modified, enabled business units to operate productively.

Diageo preferred performance indicators that were externally oriented
and forward-looking, rather than historical or internally focused
measures. The result was a management focus that instead of dwelling
on presentations of past figures and performance was more concerned
with resolving business issues and preparing for the future.

The previously unsung talents of finance experts made this
inevitable: they had more to offer than simply tallying past events.
Other business leaders, and in particular shareholders, want finance
personnel to help them get the greatest value from every asset—
including the expertise in their finance department.

In practice

• Consider moving to a rolling budget, rather than a massive

annual upheaval.

• Measure more than finances. Regularly review the issues

that have a major impact on your business, such as number
of customers acquired or lost, marketing effectiveness, and
employee engagement and productivity.

• Gain support from the top of the business and also ensure

that the new approach is as inclusive and widely supported
as possible.

• Look outside the business for information, ideas, and insight.

Find expertise among people that have made their budgets more
dynamic, practical, and relevant.

152 • 100 GREAT BUSINESS IDEAS