The Challenge
OMV is the leading oil and gas group in Central Europe and the largest Austrian listed industrial company. OMV’s exploration and production activities take place in 18 countries on five continents. OMV has established its strong position as a Vienna-based European company through profitable growth and the consolidation of its position as the leader in the central European oil and gas industry. This position is reflected not only in facts and figures but also in OMV’s corporate values: flexible/on the move, successful, European, offering personalised service. As a leader in the central European oil and gas market, OMV’s consolidated figures for 2005 reached EUR 9.88 billion in sales and EUR 926 million EBIT through the strong support of over 50,000 employees.
Forem Consulting was engaged by OMV to design, develop and implement a performance measurement methodology and model related to project evaluation as well as measuring of significant company aspects such as mission, critical goals and objectives.
The Approach
Stage 1 – INITIAL ANALYSIS
The Forem team initiated the project with an independent review of the project’s business objectives and identification of specific business processes to be measured. Together with the management of OMV, Key Success Factors (KSFs) were defined for each process within the project scope from financial, user satisfaction and infrastructure perspective.
Stage 2 – DESIGN OF PERFORMANCE MEASUREMENT SYSTEM
Based on the initial analysis and with the assistance of OMV’s management, we identified the right mix of Key Performance Indicators (KPIs) corresponding to the already established KSFs on the basis of a „cause - effect” relationship. This was followed by the setting of a scorecard performance measurement tool, balanced in three dimensions: financial, user satisfaction and infrastructure.
Stage 3 – DESIGN OF TOOL FOR DATA COLLECTION, PROCESSING AND ANALYSIS
A special tool for data collection and analysis was designed and implemented for each of the three dimensions of the measurement system. The information, collected and analyzed with the tool was measured with specific KPIs.
Stage 4 – PROJECT ASSESMENT
As a next step, the key performance indicators measures and weights were inputted into the performance measuring system. The output from the system was then analyzed with the help of a dashboard graphic tool for presentation of results.
The Outcome
Our performance measurement system is able to provide simple visual output and has received broad support by all levels of OMV’s management. Based on our approach and with the help of the implemented performance measurement tool, OMV’s management is now capable of measuring and driving values within specific internal and external projects as well as communicating the strategic goals across the entire organization in a precise and specific metric format. As a strategic tool, the performance measurement system aids value driven organizations like OMV in the creation of higher value for their customers.
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