Our Reimagining performance management paper highlights that 70–80% of companies fail to execute their strategies. One identified barrier to success was that only a small percentage of the workforce understood the organisational strategy because finance leaders grapple with the complexity of connecting team and individual objectives to strategic organisational objectives. This lack of connectivity is especially critical in today’s volatile, uncertain, complex and ambiguous operating environment.
There is increasing pressure on businesses to align their strategies towards net-zero greenhouse gas emissions and progress towards nature-positive and the Global Goal for Nature. Business leaders told us that engaging workforces with strategies in increasingly challenging conditions are key to sustainable success.
Phase II of AICPA® & CIMA® and World Business Council for Sustainable Development (WBCSD)’s Integrated Performance Management (IPM) project aims to develop an IPM framework that companies can use to improve their performance through improved workforce engagement with strategies and objectives. The ambition is that this framework will guide companies to achieve their strategies by maximising the positive impact of human capital on the functioning of the business model and long-term value creation.