Implement performance management to obtain one version of the truth and enhance the decision making process

1. Enterprise Performance Management (EPM) Implement performance management to obtain one version of the truth and enhance the decision making process Anand Subramaniam

4. EPM - Overview

5. EPM – What is it? An area of Business Intelligence (BI) which monitors & manages an organisation's performance, according to Key Performance Indicators (KPIs) It helps organisations translate a unified set of objectives into plans, monitor execution, and deliver critical insight to improve financial and operational performance A framework for organising, automating, and analysing business methodologies, metrics, processes and systems to drive the overall performance of the organisation

8. EPM – Usefulness Why? Functional departments can leverage EPM for collaborative analysis and slicing and dicing data in new and creative ways Marketing can develop new / better products & services, assess the results of campaigns, better understand their target market, cross & up sell Executives can get real-time access to key performance indicators, interact and drill-down on data as against a static number Functional Managers can analyse patterns for effective and faster investment decisions HR can use it extensively to analyse the workforce and the impact of salary and related decisions Impacts functions across org, to meet legal / regulatory needs

9. EPM – Enablers Enablers Delivers consistent information to all levels within the organisation for collaborative performance Standardise on data control & communication Continuously assess operational performance based on key performance indicators and historical trends Visualise enterprise-wide planning and budgeting in a single model Analyse customer, product and services profitability in real-time Consolidate financial data from disparate sources across the entire enterprise Optimise IT resources & infrastructure Adjust & re-align strategies as needed to achieve organisational goals Make the right investments in products, people, projects & processes

10. BI Vs. EPM Feature Traditional BI EPM Scale Departmental Enterprise-wide Focus Historical Timely Decisions Strategic and tactical Strategic, tactical, and operational Users Analysts Everyone Orientation Reactive Proactive Process Open-ended Closed-loop Measures Metrics Key performance indicators Views Generic Personalised Visuals Tables / Charts Dashboards / scorecards Collaboration informal Built-in Interaction Pull (ad hoc queries) Push (alerts) Analysis Trends Exception Data Numeric only Numeric, text, etc.

12. EPM - Elements

14. EPM – Integration of Elements Strategic Objectives & Goals Operational Objectives Business Measurements Business Processes, Rules & Activities Information Management IT Infrastructure

15. EPM – Pre-implementation Planning

16. EPM – Initiation Steps Initiation Steps Blending Business Intelligence with elements of planning, budgeting and appropriate-time monitoring Integrate and take advantage of existing IT assets Identify a Business Intelligence strategy (Operational + Tactical) Identify measurable Business Performance Parameters (BPP) Improve and simplify pegging continuously Peg operational data with business process / rules Identify the data integration strategy

17. EPM – Key Success Factors KSF Understanding current performance Flexible and nimble Infrastructure Design Process, standards and controls Integration of business systems and data Global and local compliance capability Senior Management commitment, process rigor, project discipline, focus, train, test, scope, $$

18. EPM – Define & Measure Effectiveness Effectiveness Align top-level strategic objectives and bottom-level initiatives Determine priorities and allocate resources based on those priorities Identify opportunities and problems in a timely fashion Take action to improve processes and procedures when the data warrant it Delineate responsibilities, understand actual performance relative to responsibilities, and reward and recognise accomplishments Change measurements when the underlying processes and strategies change Plan and forecast in a more reliable and timely fashion

19. EPM – Solution & Benefits Enables improved, automated processes and allocation of resources. Provides collaboration across enterprise teams and processes to accelerate business performance improvements Improve team productivity and effectiveness Results reflected in a consolidated view of the current state of the business, by combining process state information, operational activity status and IT status. It puts the current state of the business in context, enabling proactive problem avoidance / mitigation Provide real-time, contextual insight, delivering role-based visibility into business operations and metrics Resources are directed towards actions that are consistent with meeting the business goals. This enables improved resource planning and prioritisation Enable proactive and directed action Organisations are no longer fractured by independent actions of the business units. They now are aligned and working towards the same business goals Align the business strategy horizontally and vertically throughout the enterprise EPM Benefits EPM Solution

20. EPM – Example of a KPI Back Office application running on Oracle Transaction application running SQL KPI Data Sources Both KPI Internal or Customer Facing Mr. JKL KPI Benefactor Mr. XYZ KPI Initiator Mr. ABC KPI Sponsor +7days & -3 day Anticipate Upper and Lower Limits +5days & -1 day KPI Upper & Lower Tolerances Less than 30 days KPI Target Value Days KPI Unit of Measure & Formula 12 months, Daily KPI Life Span & Reporting Periodicity 29 th Jan 2010 KPI End Date 4 th Jan 2010 KPI Start Date Better Cash flow KPI Benefits Maintain credit period of less than 30 days KPI Objective Ageing Analysis KPI Description Details Subject

21. EPM – Implementation Roadmap

23. EPM – Closed Loop Process Strategy Execution Integrated Data (Internal & external events & data sources ) 1. Strategise 4. Check / Adjust 3. Monitor 2. Plan Strategy Plans Strategy Maps Proj Portfolio, Prog, Proj Plans, Budgets, Scenarios Scorecards Dashboards Forecasts Models Rules Priorities Reports Portals Events Alerts Where do we want to go? How do we get there? How are we doing? What do we need to do differently? Tactics

29. EPM – Lessons Learned Lessons Learned Ensure executive steering committee support the initiative throughout its lifecycle Identify project manager with strong interpersonal and communications skills, who understands business issues and has the authority to make tough decisions at all costs Ensure the business scenarios / rules consider how the EPM is expected to generate and support bottom line improvements Monitor vendor relation-ships closely Insist on an achievable execution plan and on a proactive communication strategy Manage and analyse assumptions (risk) as changing assumptions are additional risk events Avoid creating additional risk by rushing, under staffing, under funding, or ignoring the obvious Identify benefits and develop benefit realisation plan

30. EPM – Implementation Risks

31. EPM – Implementation Risks Implementation Risks Other work has higher priority for the business unit Business unit does not provide good people for the project Existing business process is in poor condition Staffing support requirements are underestimated Number of users are underestimated Sponsor not available Business priorities change Several business units cannot agree among themselves

32. EPM – Risks (Contd.) Implementation Risks Vendor provides the wrong staff or has high staff turnover Data quality issues Technology does not interface or integrate with existing systems Turnover of project team members Technology performance unsatisfactory or obsolete Resistance to change Lack of support from the vendor Project manager pulled to another project

33. EPM – Architecture and Applications

34. EPM - Architecture and Applications EPM

35. EPM – Dashboards Vs. Scorecards Dashboards Visual display to monitor operational performance Scorecards Visual display to chart progress against strategic & tactical goals and targets

36. EPM - Dashboards

37. EPM – Maturity Model

38. EPM – Maturity Level