Performance and value, seamlessly fused for ultimate success.

Finance leaders need to develop a deeper understanding of long-term value creation in order to build successful organizations. This requires a wider understanding of value creation beyond financial statements. A comprehensive and integrated corporate performance measurement and reporting system should include three perspectives of value: the traditional accounting perspective, the investor’s perspective, and the societal perspective. The societal perspective takes into account the positive and negative impacts of an organization’s activities on customers, employees, society, and the environment. Executing a comprehensive value creation strategy involves selecting the right metrics and key performance indicators (KPIs). These KPIs should capture both leading and lagging indicators and be incorporated into planning and forecasting, risk management, investment appraisal, and decision-making processes. Aligning internal management information with external communication enhances stakeholders’ understanding of how the organization creates value and enables long-term decision making and strategy execution. While the process requires significant effort, the potential rewards in terms of performance and return make it worthwhile.