Switzerland’s biggest car dealer AMAG builds a Strategy Cockpit using QPR Metrics, making strategy measurable and manageable.
AMAG Automobil- und Motoren AG is a Swiss car importer and dealer for Audi, Volkswagen, Skoda and SEAT founded on January 3, 1945, by Walter Haefner. The two main business units include AMAG Import for selling imported cars from Volkswagen AG to local resellers and AMAG Leasing, which leases imported cars. With a 30% market share, AMAG is a clear market leader.
As a car retailer with strong dependencies on the car manufacturer Volkswagen AG, AMAG was driven by short-term sales targets, rather than strategic goals. There was a high risk of missing critical changes in business required to adapt to new trends and maintain competitive advantages in the long run. In summer 2014, AMAG started to intensify strategic thinking by creating strategy maps for its main businesses (importing and dealing cars). Later in the same year, Krystian Lasek was appointed CFO of AMAG Import with the responsibility of taking over strategy implementation and strategic performance management. To support him in these tasks, Mr. Lasek quickly realized he needed a software solution that is easy to use and allows to integrate strategy with operations by linking key measures and actions to strategic goals, as defined in the Balanced Scorecard methodology.
Building the Strategy Cockpit
AMAG chose QPR Metrics, because it is easy for business users to handle and there is no IT involvement required in order to produce quick results. On top of this, QPR Metrics has been developed in specific for strategy mapping and the implementation of Balanced Scorecard based KPI systems. Once strategy was crystallized and translated into objectives and KPIs, QPR was used to build a management information system, called the “Strategy Cockpit AMAG (SCA)”. The objective of SCA is to provide management with all the information it needs consolidated in one portal.
There are two main parts within the solution:
- 12 strategy maps and scorecards with relevant strategic goals and initiatives (one for every business unit); and
- structured documentation of all relevant management reports (mainly reports on financial and market reports).
QPR Metrics is used by all middle and top managers within AMAG Import (~ 300 people). Maintenance is done by the Finance & Controlling department. Controlling ensures that reporting and commenting on achieved results is done on a monthly basis in order to identify the correct actions to improve performance on a continuously. On the technical side, the solution is integrated with the Business Data & Infonomics Team, which maintains and improves interfaces to third party systems
QPR Metrics is an integral part of the SCA at AMAG, needed to achieve a shift from isolated planning tools to an integrated approach. SCA is the first solution at AMAG that makes business strategies measurable and therefore, manageable. In the long-run, this will lead to better strategy implementation and improved performance. In the short run, it directs managers’ focus on the essential.
- Strategy, its objectives and measures are accessible to everyone;
- Common understanding, definition and measurement of relevant KPIs; and
- Increased efficiency through management by exception: focusing on underperforming targets.
The first release of the QPR based SCA was successfully rolled out at AMAG Import. Based on the positive experience, AMAG’s top management decided to expand the solution to cover the whole Careal Group including additional businesses, such as car dealers, rentals, real estate management, leasing services, as well as group support functions (communication, marketing, HR and IT).
About QPR Software QPR Software Plc (Nasdaq Helsinki) provides solutions for strategy execution, performance and process management, process mining and enterprise architecture in over 50 countries. Users of QPR Software gain the insight they need for informed decisions that make a difference. With 25 years of experience, 2 000 customers and over a million licenses sold, QPR’s products are highly regarded by industry analysts and customers alike.
AMAG’s QPR based strategy cockpit is the central management information system containing everything management needs to align business with strategy and increase AMAG’s success in the future.Krystian Lasek
AMAG Automobil- und Motoren AG
Lack of visibility to strategic performance measures and difficulty linking strategy with operations
QPR Metrics based strategic performance management (Strategy Cockpit AMAG)
Balanced Scorecard and strategy maps
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