• Cadbury Schweppes (C): The performance management process

      Haspeslagh, Philippe; Slagmulder, Regine; Bloemhof, M. (2003)
      This is the third of a three case series. The (A) case describes the situation of Cadbury Schweppes (CS) and its sugar confectionery business, in a state of 'satisfactory underperformance' in which past strategies and practices make it hard for new management to initiate change in this widely respected company. The (B) case shows how from 1997 to 1999 John Sunderland, the new CEO and a new divisional manager used value based management (VBM) as a vehicle for transforming respectively the company and the sugar confectionery division with strong emphasis on people and leadership practices. The (C) case describes how CS' performance management system was redesigned in line with the Managing for Value (MfV) philosophy. It illustrates the new management performance process in action in the beverages business in Spain, where the country manager is faced with major competitive challenges. The immediate purpose of the Cadbury Schweppes series is to allow an informed discussion on the use and implementation of value based management, from a broader managerial rather than the typical financial perspective. The broader purpose is to illustrate how VBM can lead to corporate transformation and a sharpening of leadership practices in large firms. The series further describes how the design of the performance management system supports the implementation of MfV.
    • Strategy and performance management at DSM

      Haspeslagh, Philippe; Slagmulder, Regine; Bloemhof, M. (2004)
      The case describes the strategic planning process and performance management system implemented at DSM, a global chemical company. In particular, it describes how the company's value based business steering system is designed to create alignment between strategy formulation and execution through strategic value contracts. The case illustrates the performance management process in action at one of the business groups. It highlights managers' dilemma between continuing to pursue the current business strategy which is in line with corporate strategy, versus responding to the financial pressures exerted by the new value based management approach which would require a radical change in strategy. The case allows students to discuss the various elements of DSM's value based management (VBM)-inspired strategy and performance management processes, and how they impact one of the business groups' efforts to improve performance. The class can analyse the strengths and weaknesses of the company's approach to aligning its strategic planning and financial management processes by introducing strategic value contracts. Finally, the case shows how DSM distinguishes between performance indicators to monitor strategy implementation, and value drivers to measure economic value creation.