Success highlights

  • Cutting reporting times

    Reduced performance reporting cycle from 5 weeks to 4 days.

  • Build senior management confidence

    Rebuild board directors trust in the reporting function in 3 months after a long period of no-confidence.

  • Better decisions

    Improved decision making released £300m capital previously tied up. 

  • Cost savings

    Collaborative processes save £150,000 per annum in management time.

The issues

A large capital projects firm with £1.2bn annual capital spend had lost confidence in its internal performance measuring and reporting function. 

  • Lack of agreement at board level on the accuracy of data delayed critical decision making in the boardroom. 
  • Cost of internal reporting had risen by >50% in 12 months without resolving the issue. 
  • The lack of a “single source of truth” for performance data unnecessarily tied up £300m of capital. 
  • This resulted in insufficient capital being available for other projects and further delays with associated cost increases.

Our approach

  • Developing an integrated strategy:

    Helped the senior team creating an outline strategy for a more effective approach to performance assessment and reporting. This enabled us to lay the foundation for trust among board representatives from different functional areas.

  • Cross-functional implementation teams:

    Recruited a team of volunteers to undertake continuous improvements to the reporting process. It built buy-in and added holistic information to the performance assessments, focusing on outcomes and avoiding boardroom arguments.

  • Continuous collaboration:

    Integrating performance assessment and reporting into the business-as-usual processes cut down on report sizes and preparation time. Resulting data was more up-to-date and comprehensive. This allowed action to be taken whenever issues occurred instead of waiting for weeks for board reports.

  • Overcoming change fatigue:

    Using an approach based on agile development and using visual tools, we co-created a program of small step initiatives to address objections and build internal support for the change.

Business results achieved

  • Within three months of the program, the reporting team had established a “single source of truth”, meaning new process and approach to performance assessment allowed all board members to be confident in the accuracy of the performance reported. 
  • This shifted the focus of discussions from past performance to future actions and improved decision-making for strategic initiatives. 
  • Over the course of the financial year, the improvements in reporting and decision making allowed the release of £300m of capital previously tied up.
  • Introducing continuous performance reporting cut the management time required for production by 65%, saving an estimated £150,000 pa.  
  • The improvements also enabled faster action to be taken to address emerging issues and greater delegation of problem-solving.   

Based on the estimated management time saved, the team achieved an ROI of 20:1

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