Since 2009 we have further developed our value-based management framework, which focusses on Total Shareholder Return (TSR). Based on a TSR-model, which identifies the determinants of our value development empirically, key metrics for internal steering were derived and connected with business-specific value drivers.
The key metrics include indicators for profitability and growth and evaluate the development of the Group and its divisions while considering certain constraints (for example with regard to captial consumption and leverage).
Besides key metrics, business-specific value drivers were identified for every business division individually. These value drivers are the main internal and external factors which influence the performance and include financial as well as non-financial indicators, such as the number of customers, business volumes, margins, market share, external indicies or economic paramters. The selection of value drivers is based on empiric analyses and was agreed with the management of each buiness division.
The improved concept was included in this years’ planning process and will be the future benchmark for monthly financial reporting as well as the basis for the quarterly discussion of individual business divisions’ performance expecatations.