Legal obligation of care
Proper business planning and control are part of the legal obligations of a company’s management team. This applies to strategic planning as well as the resulting operational planning. Management must also always be able to provide an overview of the company’s current situation and future plans.
|
Annual business plan documentation should be designed so that an expert third party can understand it within a reasonable time. In particular, underlying planning assumptions and key figures (especially if they are company- or industry-specific) should be described in detail. KPIs are determined and defined by the company and can be common, industry- or company-specific. It is important that a company is confident that there is a common understanding of what the management information is expressing and whether it is calculated and reported across the organisation uniformly, as well as externally. |
 |
A central repository of KPI definitions is therefore essential to ensure the clarity and transparency of KPIs.
Data governance is therefore an essential prerequisite for high quality decision-making in business.