Establishing the Nestlé Malaysia war-room
In 2004, Stéphane Alby was appointed CFO at Nestlé Malaysia-Singapore. Within a month of starting in his new position, Alby received a 50-page management report covering the past months from Corporate Controlling. It was the middle of the third week of the month. He flipped through it, then gave it to his secretary to shred, since it was too difficult to use the data it contained to make any business decisions. Alby wanted to be able to review 5 to 7 KPIs for each of the 13 business units, seven functions, Singapore and one region in two hours with the management committee. The importance of such indicators was clear to Alby. He needed the data in order to create transparency, solidarity, cooperation and stronger goal alignment. He wanted a new dashboard that provided key information but that also provided material for discussion among top management. Data needed to be such that it could be turned into actionable management information on the measures that mattered to make business decisions and win in the marketplace. Where should Alby start with the creation of this dashboard? What should it focus on? What should be the level of granularity of the information? What would constitute a good dashboard design?
What information is critical in evaluating strategic performance? What information is critical in designing a dashboard that meaningfully evaluates how successfully the company is achieving its business objectives? In discussing such questions, students will better understand the types of information required to evaluate how successfully companies are rolling out their strategies, in terms of performance. They will better understand the level of granularity required to make such an assessment. In this way, they will be able to design their own dashboard and also understand some of the key challenges in implementing this organizationally.
Nestlé
2004
Cranfield University
Wharley End Beds MK43 0JR, UK
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Harvard Business School Publishing
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NUCB Business School
1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]
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