With the Hilti Lab for Integrated Performance Management a cooperation between the University of St.Gallen and Hilti AG inspired both organizations between 2013 and 2026 with the aim of promoting the transfer of knowledge between science and practice and thus the generation of new knowledge in the field of corporate management through PhD projects.
Against the background of an increasingly volatile, uncertain, complex, and ambiguous environment (VUCA), traditional financial management systems who follow a rigid command & control approach (e.g., traditional planning & budgeting) are losing much of their effectiveness. The Lab's focus was therefore on exploring the interplay between control systems and behavior. Leveraging numerous research and transfer efforts in transforming financial management systems, the St. Gallen Performance Management Model has been developed (www.spmm.ch). The model provides interested companies with practicable and at the same time scientifically sound suggestions for the effective design of their financial management systems, thereby promoting self-responsible and entrepreneurial behavior without losing control. Experience to date shows that substantial performance improvements can be achieved in a suitable environment.
