KPI-Based Performance Management

Our fresh viewpoint and deep knowledge will help you to formulate a clear strategy. This will focus on long-term value creation with a clear emphasis on sustainability. Once we have your sustainability ambitions in focus, we will work out a strategy map together. This map will formulate objectives, as well as value drivers and KPIs. As we move forward, we will not lose sight of your company’s existing objectives and starting points.

It makes sense to distinguish between steering KPIs and output KPIs. Steering KPIs are indicators that keep track of the progress of your strategy. These are ideally linked to value drivers; namely the aspects in which the company should excel in order to achieve its strategic objectives. A steering KPI is action-oriented and linked to a target.

Output KPIs are not necessarily linked to strategy, but are important for other reasons such as stakeholder engagement. For instance, you steer the implementation of the strategy, but you summarize the results in indicators. Together, these indicators provide a picture of company performance. For example, let’s say you are managing the implementation of environmentally-friendly technology. You have periodic progress reports with steering KPIs for this. You also report externally on the company’s CO2 footprint. As an output KPI, this gives stakeholders an overall idea of the impact that the company is having on climate change.

Sustainalize has vast experience in the development of KPIs, and we work according to well-known guidelines such as the Global Reporting Initiative (GRI) and the Integrated Reporting Framework (IIRC).