At this point, a PPMS is the major part of the solution. The data which enable the control of a telco’s core processes by means of performance data are collected through the PPMS. Building on this foundation, managers and the employees can be given incentives in accordance with the basic principles of entre­preneurship. The generated (process) costs and quality (sales and customer satisfaction), when set in ratio to each other, represent company-wide the core indicators of a performance-related incentive program. Motivation, creativity, and the will to change are encouraged. Investment in genuine improvement potential is rewarded – fully utilizing the budget limits to secure the budget volume in the next year - is not.

The implementation of this control concept means a paradigm shift for the practice in companies. The relatively static budget corset is replaced by a performance-related control. Managers with entrepreneurial attitudes are rewarded as the winners of this development.

Goal transparency and consistency form the basis

The purpose of PPMS in the company is, first, to provide data for performance-related control (incentivization) in telecommunications companies and, second, to improve the quality of decisions by means of increased performance transparency. This has implications for the design of PPMS. First of all, goal transparency and consistency is required at all process levels. Second, the degree of goal achievement must be reflected by measured values. And third, the causality of deviations from goals must be explainable by means of measured values whenever possible.

Goal transparency and consistency for the company processes are the basic prerequisites for the design of a PPMS. Even though the goal system is not a direct component of the PPMS, it is a critical success factor with respect to the effectiveness of the PPMS. A PPMS always represents the quality of performance in terms of a set goal. If the goals are not transparent and defined in accordance with uniform standards throughout the firm – key word: consistency – a PPMS cannot develop a ­positive impact. Another decisive point is that goals have a ­direct ­relationship with the purpose of the specific process area so that performance transparency in the sense of this raison d’être can be generated (performance relationship of the goals). The ­budget goals ­described above do not have a direct relationship to performance, while the generated customer satisfaction and the process error rate frequently linked directly to it do.