Designing a performance management model 

Ørsted Business Services and Implement Consulting Group

8 October 2020

Launching a global shared service centre

To support Ørsted’s desire to help create a world that runs entirely on green energy, Ørsted decided in 2017 to consolidate a wide range of support activities in a shared service centre setup. This was done to ensure adequate and effective finance, procurement and HR support to drive the company forward and into new markets worldwide.

To ensure a multicultural and diverse workforce able to assist local offices according to their respective business, compliance and regulatory needs, more than 215 highly skilled specialists were onboarded across locations globally.

The need for global performance management

As Ørsted Business Services grew, it became evident that its future success was tied to the ability to implement standardised work processes and a unified service delivery model across its global offices. To achieve this, it was clear that Ørsted Business Services had to improve its ability to monitor, improve and drive performance in its work processes.

The operational needs in combination with bold strategic decisions made by executive management led to an increased need for performance management to deliver on ambitions of global expansion and market leadership.

Linking performance indicators to strategic objectives

Implement Consulting Group was brought onboard to assist Ørsted Business Services with the design and implementation of a new global performance management model. Bringing extensive experience from similar initiatives with other clients, a team of consultants engaged in a highly collaborative effort together with the Ørsted Business Services leadership team and other relevant specialists from the respective business areas.

Through an intense series of sprints structured around both physical and virtual workshops, the following six-step approach was effectively executed.

Ørsted’s corporate strategy was translated into specific must-win battles for Ørsted Business Services, which in turn was decomposed into performance questions and associated behaviours.

Subsequently, these performance questions and desired behaviours were used as the foundation for designing and selecting new performance metrics. This decomposition was completed to:

  • Establish a clear link between strategic objectives and performance metrics
  • Incentivise the desired behaviour through motivating key performance indicators
  • Cascade must-win battles down to department and individuals

A range of visual, interactive performance dashboards were created at different levels in the organisation to align the efforts across all departments and individual contributors.

Finally, a performance review meeting structure was defined to be aligned with other business-critical activities in an annual wheel for performance management. To support the new performance review structure, relevant performance governance activities were defined, including roles and responsibilities for the parties involved.

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