Performance Alignment

Post GFC, organisations have a heightened awareness of the need to align risk, strategy and performance management to enable successful execution of corporate strategy.

Performance Alignment is a fundamental ingredient to driving a consistent approach to help companies focus on what really counts.

Our work with multinational companies has shown us the need for alignment between strategic intent, role accountabilities and performance management, all underpinned by a risk lens that gives clarity to those in the organisation. We believe getting this right is a critical enabler to delivering business outcomes and increasing shareholder value.

Organisations are often challenged with:

• Strategy and it's key drivers being translated into specific, executable responsibilities for management strategic planning, risk management and performance management systems operating independently of each other
• Strategic planning, risk management and performance management systems operating independently of each other
• Performance management frameworks hinder the execution of strategy
• Uncertainty on whether executives are truly rewarded for achieving strategic outcomes

Our capabilities

PwC brings a multi-disciplinary approach to help clients align risk, strategy, performance management and reward, and ultimately, providing a greater likelihood of strategy being executed.

Key work tasks include:

1. Review the corporate plan, strategy selection and strategy valuation
2. Review of business, operating and leadership models (at portfolio and BU level) to evaluate clarity of accountabilities/RACI (or equivalent) for execution of strategy
3. Review of measurement systems, risk adjustment techniques and monitoring regimes used for capture, tracking and determination of results
4. Review of key individual scorecards (e.g. sample across top 200 executives) to understand how strategy is disaggregated into individual KPIs
5. Review of reward and recognition model and evidence/judgement used to assign remuneration and incentives