This thesis deals with the questions, whether there is a correlation between strategies and financial Key Performance Indicators (KPls) and, how their mutual interdependence developed over time. The author wants to find out if the KPls are changed, if the strategy is changed consequently and if that change, again, affects the KPIs.
Therefore, this work selectively focuses on the evaluation of annual reports between 2009 and 2018 and the development and application of an adjusted Balanced Score- card (=BSC) through the further investigation of its financial perspective.
Key figures make a significant contribution to the management of organisations, as they create transparency by providing information about the corporate performance and the progress towards its stated goals - its strategy. lndicators and strategies seem inevitably linked, so that they lose their meaning or significance with- out each other.
Due to a study on key performance indicators of PwC in the year 2017 in Luxembourg with over 40 executives surveyed, only 45 % of respondents believed their key performance indicators monitor the performance of long- term strategic goals and 31 % are not clearly aware of the link between their KPls and their long-term strategy. Those are alarming numbers.
Often companies use too many, outdated or even too few KPls and the progress of the company's KPls towards its strategic objectives is not regularly updated and communicated to the staff and workforce. A lack of information makes the general company performance be the main reason for the executives for monitoring KPls.
The need for change is known as 52 % of the executives surveyed see a need for improvement of their currently followed set of KPls. One of the challenges which affected the companies surveyed within their KPl process - including a lack of standardised processes across the industry - is the unclear business strategy and the KPls' irrelevancy towards the existing business/strategy itself.
This arises the question how target-oriented do German companies align their KPls and how much do they depend on the corporate strategy? ls there a correlation definition the reason why the strategy reference does not become clear and should the KPls be adapted or even changed in the long term? Which strategy leads to which KPls, and which value drivers influence them?
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Theoretical Background
- Key Performance Indicators
- Key figures
- Differentiation of key performance indicators
- Strategy
- Delineation
- Strategy classification
- Strategic Controlling Tools
- Definition
- Balanced Scorecard
- DAX Companies
- Deutscher Aktienindex
- Annual reports
- Presentation of six DAX companies
- Key Performance Indicators
- Methodology
- Sample Selection
- Annual Reports
- Strategy classification
- Selection of key performance indicators
- Development of key performance indicators 2009 - 2018
- Interrelation between key performance indicators and strategies
- Adjusted Balanced Scorecard
- Results
- Critical Appraisal
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This work aims to analyze the strategic performance of DAX companies by examining their key performance indicators (KPIs) and strategic approaches. It investigates the relationship between chosen strategies and the development of KPIs over a specified period. The study utilizes the Balanced Scorecard framework as a tool for analysis.
- Key Performance Indicator (KPI) analysis in DAX companies
- Relationship between corporate strategy and KPI development
- Application of the Balanced Scorecard framework
- Strategic controlling tools and their effectiveness
- Comparative analysis of selected DAX companies
Zusammenfassung der Kapitel (Chapter Summaries)
Introduction: This chapter likely provides an overview of the research topic, outlining the problem statement, research questions, and the overall structure of the study. It sets the context for the subsequent chapters by introducing the importance of strategic performance analysis in DAX companies and the methodology used to achieve the research objectives.
Theoretical Background: This chapter delves into the theoretical underpinnings of the research, providing a comprehensive review of relevant literature on key performance indicators (KPIs), corporate strategy, and strategic controlling tools, particularly the Balanced Scorecard. It likely defines KPIs, discusses different types of KPIs, and explains various strategic classifications. The chapter also introduces the DAX companies and their annual reports as the subject of the analysis. It lays the foundation for the empirical analysis by providing a strong theoretical framework and clarifying the concepts and tools used in the subsequent chapters.
Methodology: This chapter describes the research design and methods used in the study. It details the sample selection process, focusing on specific DAX companies and the selection criteria. The chapter explains how annual reports were used as the primary data source, outlining the process of classifying strategies and selecting relevant KPIs. It explains the approach to analyzing the development of KPIs over time and examining the interrelation between KPIs and strategies, likely explaining any modifications or adjustments made to the standard Balanced Scorecard approach.
Results: This chapter presents the findings of the empirical analysis. It likely summarizes the key results regarding the relationship between the strategies employed by the selected DAX companies and the development of their KPIs. It may also include visual representations of the data and comparisons between different companies.
Critical Appraisal: This chapter critically evaluates the study's strengths, weaknesses, limitations, and potential biases. It discusses the implications of the findings and suggests areas for future research. The chapter assesses the validity and reliability of the methods employed and reflects on the broader context of the research, acknowledging any limitations in data or methodology.
Schlüsselwörter (Keywords)
Key Performance Indicators (KPIs), Corporate Strategy, Strategic Controlling, Balanced Scorecard, DAX Companies, Annual Reports, Strategic Analysis, Financial Performance, Non-Financial Performance, Methodology, Empirical Research.
FAQ: Analysis of Strategic Performance in DAX Companies
What is the main topic of this research?
This research analyzes the strategic performance of DAX companies by examining their key performance indicators (KPIs) and strategic approaches. It investigates the relationship between chosen strategies and the development of KPIs over a specific period (2009-2018), utilizing the Balanced Scorecard framework.
What are the key objectives of this study?
The main objectives include analyzing KPIs in DAX companies, exploring the relationship between corporate strategy and KPI development, applying the Balanced Scorecard framework, evaluating the effectiveness of strategic controlling tools, and conducting a comparative analysis of selected DAX companies.
What are the key themes explored in this research?
Key themes include KPI analysis, the link between corporate strategy and KPI development, the application and effectiveness of the Balanced Scorecard, and a comparative analysis of strategic performance across different DAX companies.
What methodology is employed in this study?
The study employs a methodology that includes sample selection of DAX companies, analysis of their annual reports to classify strategies and select KPIs, tracking KPI development over time, examining the interrelation between KPIs and strategies, and utilizing an adjusted Balanced Scorecard framework for analysis.
What data sources were used?
The primary data source is the annual reports of selected DAX companies, providing information on their strategies and key performance indicators.
Which companies are included in the study?
The study focuses on a selection of DAX companies, although the precise number and names of the companies are not specified in this preview.
What is the time period covered by the research?
The research analyzes the development of key performance indicators from 2009 to 2018.
What theoretical frameworks are utilized?
The research draws on theories related to key performance indicators (KPIs), corporate strategy, and strategic controlling, primarily utilizing the Balanced Scorecard framework.
How is the Balanced Scorecard used in this study?
The Balanced Scorecard serves as the primary analytical tool to assess the strategic performance of the selected DAX companies by considering both financial and non-financial KPIs.
What are the key findings of the research (as previewed)?
The detailed findings are not presented in this preview, but the study aims to reveal the relationship between the strategies employed by the DAX companies and the development of their KPIs over the analyzed period.
What are the limitations of the study?
The limitations of the study are discussed in the "Critical Appraisal" chapter, which is not fully detailed in this preview. However, it will likely address potential biases, limitations in data or methodology, and suggestions for future research.
What are the key words associated with this research?
Key words include: Key Performance Indicators (KPIs), Corporate Strategy, Strategic Controlling, Balanced Scorecard, DAX Companies, Annual Reports, Strategic Analysis, Financial Performance, Non-Financial Performance, Methodology, Empirical Research.
- Quote paper
- Anonym (Author), 2019, Financial Key Performance Indicators and the strategy of six DAX companies. An analysis, Munich, GRIN Verlag, https://www.grin.com/document/1129932
