【正文】 Products/services representing the greatest revenues for the unit 182。L) statement and a report down to Contribution/Net Operating Assets based on those balance sheet elements that the unit can influence. As a management and performance evaluation tool, CFU reports should allow an overall understanding of the business development vs. the budget, the historical trends and benchmarks, and an easy assessment of the drivers of contribution and the development of the units’ performance on each of them. The distinction between controllable and non controllable drivers should be reflected on the Pamp。 Identification of the best drivers for revenue and cost attribution 1 CFUs are, for example: Large Clients, Government, Business, Residential, Public Telephony, Interconnection. 2 Shared Resources Units include IT, Purchasing and Logistics, Fleet, Real Estate, Administration and Security. Corporate Units include External/Internal Communications, Finance, Legal, Planning, Human Resources, Regulatory and Corporate Marketing. 中國最大的管理資源中心 第 3 頁 共 28 頁 182。 A level of disaggregation of costs and revenues that will allow managers to understand the specific drivers affecting the business and make targeted decisions for improvement 182。 Company. If you are not the intended recipient of this report, you are hereby notified that the use, circulation, quoting, or reproducing of this report is strictly prohibited and may be unlawful. CONFIDENTIAL A new approach for Financial Performance Management of Customer Focused, Corporate, Network and Other Shared Resource Telco Units Jonathan Blum CA Pedro de Boeck BL Cristina Vogeler CA Dave Wenner MI April, 1998 中國最大的管理資源中心 第 2 頁 共 28 頁 INTRODUCTION The ultimate purpose of every customer oriented Telco is to sustain and improve its financial performance. In order to achieve this purpose, the pany is divided into units that are more accountable for the pany’s performance: 182。 This report contains information that is confidential and proprietary to McKinsey amp。 CustomerFacing Units1 (CFUs), profit centers that are responsible for maximizing bottomline performance of their business by concentrating on improving sales, profits and customer satisfaction within a specific market segment. Therefore, CFU Heads should understand every revenue and cost driver under their control, and their performance measurement should be based on the contribution of their Unit to the Telco overall profitability. 182。 The identification of controllable versus noncontrollable items in order to focus managers’ attention on those drivers they can take action on and to allow the CEO to use this as a tool for evaluating financial performance and determine pensation 182。 The incorporation of benchmarks and market references in order to promote cost effectiveness The implementation of UFR should be carried out in stages or generations, determined mainly by the sequence of authority delegation to the Units, in addition to availability and quality of the necessary detailed information. Following is a description of the ultimate picture of UFR content (Sections 1 3), and the requirements to implement a first generation of reports (Section 4). The document is divided into the following sections: 1. What should be included in Unit Financial Reports? 2. Which criteria should guide the internal attribution of revenues, costs and balance sheet elements? 3. How should this tool for unit management and performance evaluation be used and administrated? 4. Which steps should be taken to implement Unit Financial Reporting? 中國最大的管理資源中心 第 4 頁 共 28 頁 1. WHAT SHOULD BE INCLUDED IN UNIT FINANCIAL REPORTS? The content of unit financial reports should detail the business drivers controlled by Unit Heads, financial indicators used for their evaluation, and other references that will help them understand the current financial performance level and the feasible potential of increasing profits for the business or reducing the costs for services under their responsibility. The ultimate financial indicator of the Telco success is its return to shareholders or Return on Equity (ROE). As shown in Exhibit 1, this indicator can be broken down into a set of linked financial drivers of ROE performance that are controlled at different levels and functions of the pany. This breakdown helps determine which indicators each Unit should understand, monitor, and report to the CEO. CFUs, for example, set pricing, market and sell products, introduce or discontinue services, decide on support strategies, product and geography mix, and level of resources to use. This means that they can control the contribution of their customer segments to the Telco, by taking actions on the contribution drivers. They should also gain control over resources in SRUs, such as which capital projects to invest in first and how to balance maintenance versus new investments for the work. They should, therefore, be held accountable for most operating assets. This will provide them with the basis for being measured on Operating Return on Capital Employed (Operating ROCE). Network and other Shared Resource and Corporate Units, on the other hand, manage the level of reso