Authored by Mickey North Rizza
“You can’t manage what you don’t measure,” a mantra Michael Corbett, CEO of Citigroup Inc. is following. Corbett’s recent requirement will track the individual performance of top executives with a scorecard that will rate these managers in five categories – capital, clients, costs, culture and control. According to Corbett, of extreme importance is how these top executives are performing in relation to their financial plan.
Accountability and discipline of the individual objectively tracked against a goal is standard practice, better known as Management by Objective or MBO. The most advanced companies tie their MBOS to their Strategic Business Outcomes, quantifying the measurements and the outcomes. Lagging companies utilize strategic objectives with both quantitative and qualitative measurements.
Think about it, the simplicity of accountability. Develop a plan based on a required outcome. Strategize and implement the plan. Track and monitor the progress toward the goal. Make adjustments as needed. Celebrate the win.
Doesn’t it sound like standard cost savings, working capital and supplier performance management programs? Making the financial sector fiscally accountable is a slam dunk from a supplier management and supply chain point of view. Hmm, perhaps the supply chain world can help our financial community?