Who wants to measure with Business Intelligence meter?
Who wants to live forever… Freddy Mercury sings
People do not like to measure own results in companies because this might lead to responsibilities and penalties and poor performance. It is better to be part of gray corporate substance and not to be responsible for too many things. If it is not possible to exactly measure somebodies contribution in overall company performance, that is even better. Just imagine that it is possible to measure contribution in corporate Economic Value Add per organizational units?
Is this really necessary?
Depends on point of view.
If its seen from management point of view especially middle and low management it is better to continue with “measure nothing” point of view. But from the perspective of owners, potential investors, supervisory board, management entrepreneur it is a must have solution. It would be excellent to measure overall EVA and to trace contributions from different company sides. Division A contributes 25% in extra profit (EVA), division B with -5% and division C with 80%. Division A raises EVA 18%, division B has average decrease of 35% during last two years and division C stagnates.Then it would be easy to trace starving dogs, cash cows, stars and similar within own company.
” Corporation: An ingenious device for obtaining profit without individual responsibility.” Ambrose Bierce
Business Performance Management (Corporate performance Management by Gartner), do not support such radical solutions, because their basic conceptual model is not build to support split of measurement method per company segments. Their core solution does not support split of models, especially EVA. If it is not build in core of solution then it is almost impossible to implement it later. If it is standard and widely spread solution there are to many problems to accept core model change.
Once again, is it wise to have business intelligence tool with precise company performance measurement method and who has it?
It is must have, it is future standard and Total Controlling Concept knows how to make it!