High Failure Rate Seen for Performance Improvement Efforts

More than four out of 10 of senior executives in study cite disappointing results; operational excellence remains elusive

  • While almost two thirds of respondents overall in the chemicals, manufacturing and retail industries rely on ROI, only 57 percent of small companies in those industries versus 75 percent of large companies emphasize it.

  • Healthcare, telecom and CPG companies rely most heavily on EBITDA to measure the success of their initiatives.

  • Life sciences companies emphasize EVA and EPS.

  • Only one in three (34 percent) executives considers their current performance management systems and processes to be effective.

  • Only a little more than a third of respondents indicated that they completely measure strategic initiative performance by using timely and accurate operating data.

  • Over half (56 percent) the respondents indicated that they lack the right amount of operating data to make effective decisions regarding operations performance.

For more information on the challenges of enterprise performance management in the age of real-time data, read "The Reality of Real-time Performance Management," the Net Best Thing column in the October/November 2003 issue of Supply & Demand Chain Executive.