The major (top-5 globally) fully integrated zinc producer (6 mines and several smelters) with considerable copper, gold, silver and lead credits had built in four years the integrated performance management system. It needed to be assessed if it had a potential to use for a upcoming strategic management system – the new shareholders’ goals.
What did the client want:
All in all the shareholders “wants” boiled down to the two points:
1. To assess the built performance management system and benchmark it with global best practice
2. Draft the recommendation for integration of the built performance management system into the new upcoming strategic management system
The in-depth all-around analysis with 34 parameters of the performance management system was conducted. As well the processes of gathering, calculation and applying the values for a performance reviews were audited. In the course of the analysis the quality of the performance indicators was audited as well in order to verify integrity and reliability of the KPIs’ values.
In order to benchmark the performance management system an international expert with track record from globally leading similar enterprises was involved. The benchmarking was conducted in close work with the expert, comparing both the methodology and KPI set, KPI’s variance, etc.
In order to assess the potential use for the upcoming strategic management system the approach from Harvard professors Dr. Norton and Dr. Kaplan (aka “Balanced Scorecard”, the core of strategic execution system) was applied. The built performance management system was checked against the global best practice in strategic management, which allowed to define a practical potential use and the corrections along with updates needed to be done.
The project challenges:
It was not easy to translate and explain to the international expert with another mentality the currently established former-Soviet practice in management. This hindered the clarity of the benchmarking with global best practice.
Justified demands of the client for confidentiality concerning strategic management was the real challenge in order to provide precise recommendations for performance management system improvement in the context of global best practice.
The top management received the in-depth analysis of the built performance management system – its weaknesses and strengths, benefits and drawbacks in benchmark with global best practice, as well the practical recommendation for improvements.
Additionally the assessment of the built performance management system with regards to its integration into the upcoming strategic management system, as well the action plan for improvements in order to succeed with such integration.