I have been reflecting on executives’ attitudes toward using business analytics and performance management methodologies, such as balanced scorecards with key performance indicators, strategy maps, customer profitability analysis, risk management, driver-based budgeting and rolling financial forecasts. What I have realized is that an organization cannot consider embracing analytics-based performance management methodologies without the involvement of its CEO, COO, CFO, CMO and other members of its executive team. But what type of involvement from them is needed?
My observations have led me to conclude there are three different types of mentalities and personality profiles executives have when instituting performance management methodology implementations: deep thinkers, pragmatists and motivators. I like to call them C-Sweet, C-Savvy and "Sea" Level executives.
Each executive profile has a unique approach to analytics-based performance management and all have one thing in common: planning horizons. All of these types of executives look to the future with varying planning horizons: near term (now or soon), intermediate term (the next three years) and long term (beyond three years).
However, each type of executive tends to focus on a different planning horizon, leading to the difference in whether they are considered a deep thinker, pragmatist or motivator.