Aggregate Performance/Efficiency Indices

You can optimize only what you can manage. You can manage only what you can measure. And you can manage only what you can see. Hence the corporate cockpit methodology offers tools and procedures for both visualizing and structuring your corporate objects (corporate object maps) and for measuring and maximizing their performance (scorecards and performance indices).

Performance indices (PI) for individual CBA questions and Aggregate Performance Indices (API) or Aggregate Efficiency Indices (AEI) for corporate objects (corporate vision, strategies, brands, products, stakeholders, assets, etc.) and for your whole company (business system).

PI and API are not supposed to be exact measurements of object performance (they are a bit subjective for that). Rather, they have been designed to give you a rough idea of this performance and how it can – and should – be improved. Thus, the difference between PI (or API) of 30% and 40% is not significant while between 20% and 80% obviously is.

 You (or your business analyst) assign PI (or scores) after you perform analysis related to the corresponding CBA question (on the Aggregate Performance Scorecard) or of values of the corresponding object KPI (on the KPI Scorecard). Thus, PI values are the end result of your analysis of the object/area/function in question.

The most important results or your object analysis are, obviously, your ACRC and performance maximization plans – financial and operational. However, PI (and API) are useful, because they give you a ‘performance-at-a-glance’ information and thus identify (pinpoint) the most troubling spots and areas in your corporate performance.

After you assign PI scores to individual questions and KPI, CBA Toolkit automatically calculates API for individual objects, object portfolios and for your whole business system. API for an individual object is calculated as a simple or weighted average of PI for individual questions and KPI.

API for an object portfolio (brands, products, stakeholders, etc.) is calculated as a simple or weighted average of API for objects that constitute the portfolio in question. API for your whole company is calculated as a simple or weighted average of API for individual objects and objects portfolios that constitute your business system.