Royal DSM: Strategic, Planning, Budgeting and Forecasting
THE ROLE OF KPIS AND REMUNERATION FRAMEWORKS IN SETTING OWNERSHIP AND ACCOUNTABILITY FOR SUSTAINABILITY
When we launched our new strategy, sustainability was identified as a key business and growth driver. To be
able to track our performance against the 2015 vision we developed a set of Key Performance Indicators (KPIs) that incorporated our sustainability aspirations. These were developed to be reported externally as well as to be used internally to steer the business. A selection of these KPIs that are well established within the business are used in performance management and are linked to the variable pay of the management Board and employees.
DSM Managing Board Total Direct Compensation (on target)
“The development of the KPIs, management confidence in them (i.e. reliability and accuracy) as well regular internal management reporting means that we can use them as part of our performance management processes.”
Bert Steinbusch, Project Director Finance Transformation, Royal DSM