Randstad has an extensive performance management system in place. Performance management at Randstad starts by using specific performance measurement tools at the lowest level in our organization in the context of what we call 'activity-based field steering' (ABFS). Our ABFS model requires our units and teams to translate information on activity (i.e., calls and visits) into actual performance on a daily basis. As our planning and control cycle is operationally driven, the data acquired through ABFS drive action right up to the Executive Board level. Direct reporting lines exist between the Executive Board and the management teams of the operating companies. As a result, Executive Board members are closely involved with the operating companies under their responsibility.
Our day-to-day performance overview includes key performance indicators (KPIs) showing our growth, productivity, profitability, working capital, and cash flow. We use a variety of tools within our planning and control cycle to assess our performance and align future strategic and investment decisions to best utilize commercial and organizational opportunities. The planning and control cycle is embedded in our Risk & Control framework.
The performance of each operating company is measured at various stages during the year:
- Weekly overview of activities (ABFS tracker), temporary employees working (volumes), and permanent placements;
- Monthly income statement, including selected non-financial data, and a forecast;
- Quarterly income statement, balance sheet, cash flow, non-financial data, and a forecast.
Each month, the Executive Board discusses performance with the management team of each operating company. The agenda includes financial and operational performance, forecasts, risk management, and the progress made in achieving strategic goals. Internal and external benchmarks are used to challenge performance and to identify points for improvement. In addition to the monthly control cycle, a yearly strategic planning cycle takes place in the spring, and an operational planning cycle takes place in the fall.