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Dear All,

Can someone please give me a sence of how does the role of Business Transformation differ from Performance Management and how established are those roles to prepare for an expanded leadership roles in mulitnationals or consulting.

And what is / are the typical background to transition into those role?

Regards,

Ekundayo

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Sidi replied on 05/21/2018
McKinsey Engagement Manager & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 50+ candidates secure MBB offers

Hi Ekundayo,

the central difference between these two "entities" lies in what they are focusing on.

Organizational Performance Management

  • This includes activities which ensure that an organization's operative goals are consistently being met in an effective and efficient manner. Performance management can focus on the performance of the entire organization, a department, employees, or even the processes to build products or services. It is the instrument to ensure daily operations are carried out according to strategic objectives.
  • In essence, Performance Management can be carried out by a spreadsheet-savvy analyst who has an effective escalation process at his disposal to react to negative (and positive!) performance deviations.

Organizational Business Transformation

  • This encompasses the adaptation of an organisation’s value proposition and business & operational model to the fundamental changes brought by global trends both economical and societal, digital technologies and increasingly demanding stakeholders needs and expectations. Such a transformation is catalyzed by means of a well-run Transfomation Office (TO). The TO does not only sets the schedule and the tone of the transformation but also keeps score. A simple, consistent way of defining and tracking value (in dollars) gives it clear credibility when it comes to commending those who have made good progress and to calling out laggards. The TO ensures everyone has access to the same simple rulebook and is trained to understand it. Every initiative should link to the same value measure and in cases of doubt the TO should give the final answer.
  • Transformation requires large amounts of change management, coordination of complex stakeholders, and more importantly people committed to make it happen and that have the right skills and seniority/gravitas to ensure that things "move".

Cheers, Sidi

Anonymous A replied on 05/22/2018

Hi Ekundayo,

Based on my industry experience:

1) EPM acronym is most often used to describe IT systems which support activities within financial planning and analysis (FP&A) business function. That includes management accounting, budgeting and KPI setting. Biggest vendors of such systems are Oracle and SAP.

Working within EPM field prepares you for leading FP&A and may help you become CFO someday.

2) Business Transformation often refers to a project office which manages initiatives on improving sales, cost structure, technology or organization depending on the company.

Working within Business Transformation will help you get a more senior job with stakeholders of your projects. For example, a management role in other business functions or an experienced hire role in a consulting firm which supports your employer.

(edited)

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