Content thumbnail Partnering for Performance Part 5

Measuring performance against strategy However, they also feel there is more to do. Performance measurement Lanitis Group: measuring and rewarding performance against strategy is cited as the number one area where they feel they need to across a diverse portfolio make a bigger contribution in their collaboration with the CEO (see Chart 7). The Lanitis Group, one of the largest business groups in Cyprus, has a Chart 7: In which of the following areas do you think you need to make a bigger portfolio that runs from property development to travel and tourism. For contribution? (chart shows average ranking — a lower number means it was Lanitis Group CEO Costas Charitou, establishing a consistent performance ranked more highly) measurement philosophy is key to building the right organizational culture. Measuring organizational performance against overall strategy (including 2.1 “Whether it’s a hotel, construction company or restaurant business, financial and non-financial metrics) you need to have a framework in place that will bind the group Operating model redesign/major 2.4 together,” he explains. “We reward performance on elements that are change to organizational structure the same for everybody but have the flexibility to incorporate sector- Shift to digital business model 2.7 specific performance standards for hotels, construction companies, real estate, property development and restaurants.” M&A decisions 2.8 Key findings about the CFO’s role in performance 0 1 2 3 4 5 measurement Rank (lower is better) A significant majority of CFOs (61%) make performance measurement an A significant majority of CFOs we surveyed (62%) feel they make a significant important priority for their organization in the next three years (see Chart 8). or very significant contribution to measuring performance against strategy Chart 8: Over the next three years, how much of a priority will measuring (see Chart 6). organizational performance be for your organization? Chart 6: How much of a contribution do you make to measuring performance against strategy? Very high priority 19 Very significant contribution 19 High priority 42 Significant contribution 43 Medium priority 31 Average contribution 28 Low priority 8 Small contribution 8 Very low priority 1 % No contribution at all 2 0 5 10 15 20 25 30 35 40 45 % 0 10 20 30 40 50 Partnering for performance Part 5: the CFO and the chief executive officer 18

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